Here are a few nuggets from the most recent quarterly TNS survey:
- 10% of Canadians are making extra payments to pay down their mortgage faster. (Such a small number!)
- 5% have recently switched from a fixed to a variable rate mortgage
- 12% are worried about missing a mortgage payment
- 4% have actually missed a payment
The survey questions were posed to Canadian mortgage holders between March 18 and March 25, 2010. 1,032 people were interviewed for the survey. More info…
Wow…41 people out of the survey have missed a payment…that seems rather large.
Agreed, this survey is not good news.
I am deciding between and 3.79% five-year fixed close mortgage rate and a 2.1% 1 year fix rate, and variable rates after 1 year. I think because we are expecting rate hike this June and July, a 1-year fixed 2.1% then variable is definitely better than variable. Can any one give me some suggestions? My closing date is June 14th, and I need to make the decision this week. Thanks!
Hi Cheryl,
Thanks for the question. If you’re very well-suited to a short-term/variable mortgage then a 1-year fixed is a good potential option.
With the typical economist expecting a 1.25% Bank of Canada rate increase by December 31, a 1-year can insulate you from that rise.
The risk you take is that variable-rate discounts are not as good when you renew in one year. That said, it seems that most people expect them to be. Moreover, you can always consider renewing into another 1-year term when the time comes.
Cheers,
Rob
Hi there, my 5 year closed fixed was up back in December 2009, so I didn’t want to close again for 5 year so I decided to get the scotia 2.49% closed fix rate but in my terms , I could close a 5 year through scotia at anytime or any other variable after 6 months. I saw how all of sudden the rates started going up so I closed a 5 year fixed rate through scotia at 3.5 % last week of March 2010. Did I make a good decision ?
3.5% for 5 year is awesome. No one can possibly say that is not a good deal. Way to go!
Thanks Tran, out of ten years that I have been a home owner , this is the best rate I ever got. When I first bought my house, I had a 6.2% and that was a killer……