Are Canadian Mortgage Rates the Lowest They’ll Go?

Mortgage rates in Canada have been falling steadily—-some would say precipitously—for some time now, but many Canadians appear to think that the days of cheap borrowing are bottoming out.

According to a CIBC poll, 57% of Canadians would now choose a fixed-rate mortgage with locked-in rates. Only 48% of respondents to a poll conducted in 2014 gave the same response, and back in 2011 that number was just 30%.

These numbers included those considering acquiring a new mortgage, renewing their current mortgage, or refinancing to a different loan.

Adjustable-rate mortgages are preferable in periods when mortgage rates are expected to fall from current levels; only 30% of respondents to the poll said they would choose a variable-rate mortgage as opposed to a fixed-rate mortgage. This suggests that nearly twice as many Canadians are predicting a rise in mortgage rates from their current levels.

Mortgage Expert’s Opinions Vary, But the Public Has Spoken

Some mortgage experts in Canada have been predicting an end to the mortgage rate free-fall for several months, while others have remained unconvinced by certain indirect signs pointing in this direction. When it comes to public opinion, though, the poll is clear: Canadians are increasingly convinced that mortgage rates are due to start climbing again.

Meanwhile, lenders are still aggressively battling each other for borrowers with rates well below 3% on fixed-rate mortgages, making this an excellent time for anyone who has been considering purchasing a home or refinancing an existing loan to take the plunge and start the paperwork.

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