At least that’s what a new CAAMP survey suggests. The report says 80% of Canadians could afford the higher payments resulting from a 1/2 % rate hike.
Yet, if affordability became an issue, where would Canadians turn? According to the survey, 1/2 of borrowers may need some advice. That’s apparently the ratio of people that said they were not aware of “affordability enhancers” like long-term amortizations, 100% financing, and interest-only mortgages.
Other survey tidbits:
- 4.9 million Canadians own homes.
- Canadians have become more risk averse. Despite record low rates, 73% of respondents chose fixed-rate mortgages this year, up from 67% last year.
- 5 is still the magic number. 44% of mortgage holders renewing this quarter say they will renew into a 5-year term (the most popular).