Fixed-Rate Mortgages Making a Comeback as Four in Ten (42%) Prospective Homebuyers Intend to Take Out a
Fixed-Rate Mortgage

Toronto, ON - Among the 27% of Canadians who say they're at least somewhat likely to buy a home within the next two years, four in ten (42%) prospective homebuyers are intending to take out a fixed-rate mortgage, once again making it the most popular type of mortgage, according to the 19th annual RBC homeownership poll conducted by Ipsos Reid. In 2008, 49% intended to take out a fixed-rate mortgage, but since then preference for this type of financing has been on a steady decline to a low of 40% last year, but has since rebounded up to 42%. By comparison, 37% intend to take out a combination mortgage, while two in ten (21%) favour a variable mortgage.

When choosing a mortgage provider, homeowners say that finding the best rate (56%) was the main reason they went with the mortgage that they did. Others said that things like trust in the lender or loyalty (43%) played a factor, along with convenience (33%), service (29%), the advice provided (20%), product features (11%) or some other thing (8%).

Homeowners appear to be taking advantage of low interest rates before they inevitably rise. Six in ten (62%) mortgage holders `agree' (22% strongly/40% somewhat) that they are `taking advantage of low interest rates to pay down more principal' on their mortgage, up 5 points since last year. Further, a majority (55%) of mortgage-holders now `disagree' (16% strongly/39% somewhat) that `interest rate increases will cause them financially difficulty', up 6 points since last year, and suggesting that more homeowners are getting their financial state in order.

These are some of the findings of the RBC's 19th Annual Homeownership Poll conducted by Ipsos Reid between January 24 - 30, 2012. The annual online survey tracks Canadians attitudes and behaviours around home buying and homeownership. The results are based on a sample where quota sampling and weighting are employed to balance demographics and ensure that the sample's composition reflects that of the actual Canadian population according to Census data. Quota samples with weighting from the Ipsos online panel provide results that are intended to approximate a probability sample. An unweighted probability sample of 2,006 adult Canadians, with 100% response rate would have an estimated margin of error of 1772 percentage points, 19 times out of 20. The margin of error will be larger within regions and for other sub-groupings of the survey population.

For more information on this news release, please contact:

Sean Simpson
Associate Vice President
Ipsos Reid
Public Affairs
416.572.4474
[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.

About Ipsos

Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. In October 2011 Ipsos completed the acquisition of Synovate. The combination forms the world's third largest market research company.

With offices in 84 countries, Ipsos delivers insightful expertise across six research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management.

Ipsos researchers 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 and they measure public opinion around the globe.

Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of e1,363 billion (1.897 billion USD) in 2011.

Visit www.ipsos-na.com to learn more about Ipsos' offerings and capabilities.