With the interest rate as low as it is, many Canadians are choosing to lock in their payments instead of using a variable rate mortgage. This is according to a new survey by CIBC showing that more and more home owners across the country are recognizing the fact that interest rates really can't get any lower than they are now.
According to the survey, 57% of those polled don't believe that the mortgage rates are going to go down any further and would select a mortgage with a fixed-rate if they were going to buy a new home or renew or refinance an existing mortgage. Last year, 48% said that they would opt for a fixed-rate home loan while in 2011 the polls showed that only 39% would choose this mortgage type.
At the same time, 30% of the respondents to the poll said that they would choose a mortgage with a variable rate and 11% said that they were unsure.
These results aren't surprising considering the spring price war that is occurring between the mortgage lenders right now. After the interest rates went down in January, and considering the spring specials, the opportunity to get a mortgage with such a low rate seems too good to pass up. With their rates hovering around 2.7%, it's quite natural to assume that they can't go anywhere but up from here. Most economists also believe that the rates won't be cut again in 2015.
This is the perfect time for first time home buyers to take the plunge into home ownership with these rates that are historically low. It's also a great time to refinance your home loan to take advantage of the low, low rates.