Here's some interesting insights into the minds of Canadian mortgage shoppers, courtesy of RBC's 2007 Homebuyers Survey.
- 66% of Canadians say it's difficult to choose between fixed and variable rate mortgages.
- Despite the potential interest savings, only 12% of fixed-rate shoppers would choose a variable rate mortgage instead.
- The biggest reason people don't choose variable rate mortgages is fear of changing monthly payments. The truth is, fixed monthly payments and variable rate mortgages are not necessarily mutually exclusive.
- Most popular mortgage term: 5-year (46% choose it)
- Average mortgage balance: $105,557 (up 10% since last year!)
- Percentage of Canadians with home equity loans: 39%
Dear Melanie:
I am always delighted to see quality information posted by a Canadian – for Canadians.
Excellent blog! In fact, I have just linked to your blog.
Keep up the great work.
Cheers!
Mark Huber, CFP
Author of *The UnCanadian Way* series of eBooks and audios http://howtobesetforlife.com/TheUnCanadianWay/
http://howtogetridofyourmortgage.com/theuncanadianway/
Thanks for the kind words Mark! /Melanie
Hi Melanie,
Thanks for dropping by and signing up for the First Ever! – Canadian Tour of Personal Finance blogs. It’s going to be a great event.
I’ve approved your account and so we should be ready to go shortly.
Please let your other personal finance blogger friends about the event.
Thanks,
Monty Loree
http://www.canadian-money-advisor.ca
The average mortgage balance will probably keep increasing as Canadian home prices rise, not to mention Canadians’ debt!
Actually I’ve been studying a lot about fixed versus variable rate mortgages lately, and in a book that I’ve been reading called “Your Family’s Money” by Jerry White, between 1970 and 2000, variable-rate mortgages were in the best interests of the consumer 95 per cent of the time!
Despite that interesting Canadian statistic, and other similar ones, I too am still thinking that we’ll go fixed despite the fact that statistically we’ll likely save money going variable…isn’t it amazing how ingrained the safety of insurance is in the minds of us all!
Very true, and your comments are right in line with the latest research.
https://canadianmortgagetrends.com/canadian_mortgage_trends/2007/03/5year_mortgages.html
Currently, with fixed and variable rates so similar, it’s really tough for people to bet on rates going down, despite all the research that says variable is the way to go (for the long haul).