REPEAT: Two-Thirds of Canadians Looking to 'Lock-In' to a Fixed Rate for Certainty of Mortgage Payments: BMO
- Leger report shows eight in ten Canadians seeking rate certainty for as long as possible - Half of Canadians would consider shortening the amortization on their mortgage - Locking in for a 5 or 10 year term provides certainty of payment and protection against higher rates - 25-year amortization helps build home equity faster - Current rates make home ownership affordable
(firmenpresse) - TORONTO, ONTARIO -- (Marketwire) -- 03/26/12 -- With interest rate hikes potentially coming as early as next year, a BMO Bank of Montreal study shows Canadian homebuyers are looking for payment certainty for as long as possible and are considering a shorter amortization to build equity in their home.
The report, conducted by Leger Marketing, revealed:
"Up until recently, interest rate hikes may not have been top of mind for Canadians, but there are now signals that rates may change sooner than expected," said Katie Archdekin, Head of Mortgage Products, BMO Bank of Montreal. "BMO has been encouraging Canadian homebuyers to stress-test their mortgages and ensure that an increase in interest rates is manageable. Having rate certainty can help protect Canadian households from interest rate spikes."
According to BMO Economics, interest rates may begin to climb as soon as next year.
Ms. Archdekin added, "We believe that for many Canadians a mortgage that carries a maximum 25 year amortization is the right choice for today's environment, as it helps households build equity in their home faster."
Furthermore, Ms. Archdekin noted that on a $400,000 mortgage at a 5 per cent interest rate, choosing a 25 year amortization can save upwards of $70,000 in interest, which Canadians can put directly towards their retirement.
BMO offers a new 10-year fixed mortgage at 3.99 per cent is modelled after its popular 5-year fixed mortgage, which offers a rate of 2.99 per cent. Both are available to new and existing customers and come with a maximum 25-year amortization. Both rate offers are available until March 28th.
The survey was completed on-line from February 21 to 23, 2012, using Leger Marketing's online panel, LegerWeb. A sample of 1500 Canadians, 18+, were surveyed. A probability sample of the same size would yield a margin of error of +/-2.5%, 19 times out of 20.
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly-diversified North American financial services organization. With total assets of $538 billion as at January 31, 2012, and more than 47,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.
Contacts:
Media Contacts:
Jessica Park, Toronto
(416) 867-3996
Sarah Bensadoun, Montreal
(514) 877-8224
Laurie Grant, Vancouver
(604) 665-7596
Web:
Twitter: (at)BMOmedia
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Datum: 26.03.2012 - 12:19 Uhr
Sprache: Deutsch
News-ID 128262
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TORONTO, ONTARIO
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