Most Canadians choosing fixed-rate mortgages: CIBC

More than half of Canadians (57%) are locking in monthly mortgages at today’s low interest rates, finds a new CIBC poll—that compares to 48% in 2014, and 39% in 2011.

It adds the number of Canadians selecting variable-rate mortgages has held steady at 30% for the last five years.

Read: Prepare clients for interest rate risk

CIBC vice-president Barry Gollom says, “Clients are telling us they don’t expect rates to [drop] any lower. And, in today’s housing market, [most] want the comfort and security of knowing exactly what their mortgage payments will be for the next four or five years.”

In fact, only 44% of respondents expect higher mortgage rates next year, down from 47% in 2014, and 61% in 2011. About the same percentage (42%) expect rates to remain the same for the next 12 months.

Read: More Canadian banks cut lending rates

Gollom adds, “[Interest] rates tend to factor heavily into [mortgage] decisions, but it’s important to [also] make decisions based on your financial situation, and how well you’re able to juggle monthly payment[s], expenses and saving.”

Read:

• Your clients may be saving too much
• Prioritize RRSPs over debt repayment: Golombek

Provincial breakdown of poll findings

By region, the percentage of Canadians who would choose a fixed-rate mortgage today is as follows.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.