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Canadians Can Weather Rate Hikes

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).