A new report by The Canadian Association of Accredited Mortgage Professionals found that out of 40,000 loans issued in 2009 that 86 per cent of new mortgages were of the fixed-rate variety.
This is a good indicator that Canadians are choosing the less risky financial path by not taking variable-rate mortgages. These home owners seem to have factored in future interest rates when deciding on what type of mortgage is better for them. Of the homeowners who chose a fixed-rate mortgage, 70 per cent also chose terms of five years or longer.
What’s particularly interesting in this report is that the majority borrowed less money than the maximum allowed by their lenders.
The two factors combined goes against the current concern that Canadians are overburdening themselves with too much debt in an effort to take advantage of low interest rates.
