The Bank of Canada may have kept its key interest rate at one per cent for the 29th consecutive time last week, but Canadians are still expecting rising fixed mortgage rates, according to a recent CIBC poll.
The survey, conducted by Nielsen, found 47 per cent of Canadians anticipate mortgage rates to increase in the next year. If they had to make the choice between a fixed rate or variable mortgage today, 48 per cent would choose a fixed rate.
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Expert Panel Calls For Potential Rate Increase
The survey results are in line with Rate Supermarket’s own Mortgage Rate Outlook Panel. Earlier this month, the panel’s experts apprised that with global economic trends evolving, there may not be a possibility of a “competitively low interest rate environment.”
Younger Buyers Most Likely to Lock In
The current preference for fixed rate mortgages is higher amongst young Canadians, the CIBC poll indicates. 56 per cent of Canadians between the ages of 25 and 34 said they would choose a fixed rate today, compared to 43 per cent of Canadians aged 45 to 54.
The difference could be chalked up to financial stability; young, first-time buyers may require the reliability and predictability of a locked-in rate, whereas older, more established buyers may be able to accommodate some rate fluctuations.