Mortgage Holders Ready For Rate Hike
“Recent CMHC Report Says That Canadians Are Prepared For Interest Rates To Rise”
According to a recently completed survey by the Canada Mortgage And Housing Corporation, 80% of Canadian home owners are doing some form of annual budgeting, and 71% have factored into their budgeting efforts the possibility the interest rates will be going up.
Here’s more information on the survey from the financial post”
The major risk area of people not prepared was in the new home owner category where budgeting and cash flow planning was not as predominant as with longer term home owners.
It would seem that all the news related to the projected future path of interest rates and tightening up of mortgage regulations has registered with Canadians that they must be prudent in managing the level of debt they are carrying, primarily mortgage debt, and the potential costs of carrying the debt.
The survey also indicated that 75% of respondents were focused on paying off their debt as soon as possible. Once again, this is good for the economy as a whole that the majority of the general population is more capable of withstanding a significant interest rate increase or a real estate market price adjustment.
It will be interesting to see how mortgage holders will continue to view fixed and variable rates in the months to come in terms of balancing cash flow management in the short term and interest rate risk in the longer term.
As a Canadian mortgage holder or future mortgage holder, there has never been a better time to select a mortgage program that best fits your budget and debt repayment preference.
And with all the information now available on line, its much easier to get a sense of where things are headed in the local and global financial markets, as well as first hand information on how different mortgage products can help you better manage your finances.
Hopefully interest rates will continue to stay down, but the reality is they are more likely to go up than stay where they are for any extended length of time.
If you’re going through a budgeting process and want to further develop your mortgage repayment strategy, I suggest that you give me a call and we’ll go through everything together and get all your questions answered.
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About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel