Canadians Want to Lock in Their Mortgages for Longer
Here at Robert Floris’ Mortgage Architects office, we couldn’t agree more with the article below. Mortgage rates are at the lowest we’ve ever seen. Our philosophy is that they have no where to go but up. But the problem is, we don’t know when. That is why many clients ate hedging their mortgage positions by locking into fixed mortgages. These clients are paying it safe.
The majority of Canadian homeowners would welcome the opportunity to lock in their mortgages for longer according to a new survey from CIBC.
The poll conducted for the mortgage lender by Nielsen found that 47 per cent would opt for a medium-term and 27 per cent would seek a longer-term mortgage if they were to acquire, refinance or renew a mortgage today. Just 19 per cent would look for a shorter term mortgage. “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,” says Barry Gollom, Vice President, Mortgages and Lending at CIBC. “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.”
The poll also found that 62 per cent of those with a mortgage believe it will be at least ten years before they are mortgage-free.
Robert Floris is an independent mortgage broker at Mortgage Architects in Hamilton, Ontario.