14th RBC Home Ownership Survey, Part Two: Fixed Mortgages Still Preferred, But Interest In Combination On The Rise

Toronto, ON - According to the 14th Annual RBC Homeownership Survey, conducted by Ipsos Reid, fixed mortgages are still the most popular choice for potential buyers (49%) and current mortgage holders (54% current homeowners plan to renew fixed). In comparison, 13% of potential buyers and 23% of current homeowners would opt for variable and 38% of potential buyers and 23% of current homeowners would choose combination. Of note, the propensity to plan to go combination is up 8 points among potential buyers (and variable down 7 points). And, sure enough, when informed that research has shown that people in variable rate mortgage will typically pay less interest in the long term, 61% of homeowners that said they planned to go fixed next time, say they'd be more likely to choose variable or combined instead.

There is much confusion among Canadians as a whole about the different rates available. Many say they don't understand the differences (22%) or advantages/ disadvantages (27%); most have difficulty making this crucial decision (66%) and would be interested in more information about combination rates (61%) or how a variable rate mortgage might work for them (55%). This confusion and appetite for more information is intensified among renters (vs. current homeowners).

These are some of the findings of an Ipsos Reid/RBC online survey conducted from January 18 to 22, 2007. For the study, a representative sample of 2,404 adult Canadians was interviewed by telephone. With a sample of this size, the results are considered accurate to within 177 2.0 percentage points, 19 times out of 20, of what they would have been had the entire adult Canadian population been polled. The margin of error will be larger within regions and for other sub-groupings of the survey population. These data were weighted to ensure the sample's regional and age/sex composition reflects that of the actual Canadian population according to Census data.

Please refer to the data tables and charts for further survey results.

For more information on this press release, please contact:
John Wright
Senior Vice President
Ipsos Reid Public Affairs
(416) 324-2900
[email protected]

Or

Jennifer McLeod
Senior Research Manager
Ipsos Reid Public Affairs
(416) 324-2900
[email protected]

About Ipsos Reid
Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 600 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid's marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-based market research group.

To learn more, please visit www.ipsos.ca.

Ipsos
Ipsos is a leading global survey-based market research company, owned and managed by research professionals. Ipsos helps interpret, simulate, and anticipate the needs and responses of consumers, customers, and citizens around the world.

Member companies assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media. They measure public opinion around the globe.

Ipsos member companies offer expertise in advertising, customer loyalty, marketing, media, and public affairs research, as well as forecasting, modeling, and consulting. Ipsos has a full line of custom, syndicated, omnibus, panel, and online research products and services, guided by industry experts and bolstered by advanced analytics and methodologies. The company was founded in 1975 and has been publicly traded since 1999. In 2006, Ipsos generated global revenues of 857.1 million euros ($1.1 billion USD).

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