Canadians Not Tempted By Lower RatesBy Andrew Rickard | July 17 2015 09:26AM
Even though interest rates have decreased, the overwhelming majority of Canadians are not inclined to take on more debt.
In a poll of more than 1500 adults conducted for CIBC earlier this month, 93% of the respondents said that they would be unlikely to borrow more money if interest rates were to fall, and 33% said they would use lower rates as an opportunity to accelerate debt repayments. Just 7% of those surveyed said they would consider borrowing more money if interest rates were to decline further. The youngest demographic, those between the ages of 18 and 34, were the most likely to be affected with 12% saying they would think about taking on more debt if rates went lower.
"With interest rates historically low, and many Canadians already focused on debt repayment, it's not surprising that a further rate cut won't cause many Canadians to borrow more," comments Christina Kramer, Executive Vice President, Retail and Business Banking at CIBC. "For many Canadians, lower interest rates mean they can accelerate debt repayment by increasing monthly payments or making lump sum payments."