TORONTO, June 2, 2011 /CNW/ - Canadians are split in their views on whether a fixed rate or variable rate mortgage is the right way to go in the current rate environment, even as they anticipate higher interest rates over the next year, according to a recent CIBC/Harris Decima poll. Key findings of the poll include:
While the poll revealed that Canadians believe rates are likely to increase in the next 12 months, Ms. Delaney advised homeowners to consider additional factors beyond interest rate predictions when making mortgage decisions. "You need to approach the fixed versus variable decision from the inside out, starting with your personal financial goals and working from there," added Ms. Delaney. "Your mortgage is a major part of your overall financial plan, and your decisions should be based on how your mortgage fits with your long term financial goals, not on short term rate fluctuations."
The poll results also highlight that views on choosing a fixed or variable mortgage can change depending on your stage of life. For example:
While homebuyers this Spring will need to make the fixed vs variable decision when they buy a new home, Ms. Delaney also encouraged existing mortgage holders to take a fresh look at their mortgage and evaluate their options to help reduce their balance faster.
With 27 years of direct mortgage lending experience, first with a major bank, then a local credit union and now as a Mortgage Broker, I have arranged mortgages on almost every type of property imaginable....even a 50+ ft fishing trawler!!