Most Canadians Would Choose Longer Mortgage Ratespar Andrew Rickard | May 20 2015 08:49AM
If they were to refinance or renew their mortgages today, most Canadians say they would choose a medium or long-term rate.
A survey of more than a thousand Canadians conducted by Nielsen for CIBC in early March revealed that 74% of them would opt for a medium-term or longer-term mortgage if they were to acquire, refinance or renew a mortgage today.
The poll found that 47% of respondents would choose a medium-term mortgage of three or five years, while 27% believe now is the time to opt for a longer-term mortgage of seven or ten years. Only 19% of those surveyed indicated that they would choose a shorter term of one or two years. CIBC notes that 62% Canadians with a mortgage think it will be at least ten years before they are mortgage-free, which makes it possible to choose a longer term in the first place.
"Canadians are recognizing that today's historically low rates won't last forever and some are looking for ways to bring predictability to their finances over the long term," comments Barry Gollom, Vice President, Mortgages and Lending at CIBC. "Most Canadians tend to opt for a fixed rate over 5 years when choosing a mortgage today. With more than 1 in 4 Canadians now saying they would choose a longer term of 7 or 10 years, we may be seeing the start of a shift to longer terms."