With most believing that mortgage rates have nowhere to go but up, it’s not surprising that many people would choose a fixed rate mortgage.
A new CIBC Poll conducted by Harris/Decima reveals half of all Canadians said they would choose a fixed rate mortgage if they had to decide today, a notable increase over last year when only 39 per cent said they would choose a fixed rate. Only 32 per cent said they would choose a variable rate mortgage. Those sitting on the fence dropped, with 18 per cent saying they were uncertain which mortgage would be right for them, lower than the 30 per cent who were undecided in 2011.
Canadians also expect mortgage rates to be higher over the next 12 months, with 86 per cent believing that rates will either stay the same or be higher a year from now, while only six per cent believe rates will be lower.
Regionally, Atlantic Canadians (63 per cent) were among those most likely to choose a fixed rate mortgage, followed by those in Quebec (51 per cent).