Three Quarters (72%) of Mortgage Holders Expect to be
Mortgage-Free by Age 65

Toronto, ON - Three quarters (72%) of Canadians who own a house and have a mortgage say that they expect to have their mortgage fully paid off by the time they reach the age of 65, according to a new Ipsos Reid poll conducted on behalf of Royal Bank. Interestingly, younger mortgage-holders aged 18 to 34 are much more likely to think they'll have their mortgage paid off at an early age with three quarters (73%) expecting to have their mortgage eliminate by the age of 55, compared to fewer than half (45%) of mortgage-holders who are aged 35 to 54.

However, reality might be a different story as one third (33%) of homeowners aged 55 or older say they still have a mortgage, and among those that do, one in three (33%) believe it will take them at least 16 years or even longer to pay down their mortgage. Among all homeowners, however, four in ten (41%) are mortgage-free, an increase of 3 points since early in 2011.

When looking for a mortgage, finding one with low interest rates appears to be the most important factor to Canadians. In fact, nearly all (96%) Canadians say that it is `important' (87% very/9% somewhat), placing it ahead of other factors including flexible payment options (88% important, 50% very/37% somewhat), accelerated payment options (85% important, 51% very/34% somewhat), the option to use a home-equity line of credit along with their mortgage (60% important, 22% very/37% somewhat), and finding a hybrid mortgage that blends fixed and variable rates (58% important, 15% very/43% somewhat).

Likely a result of the shaky global economy and the fact that interest rates are already at rock bottom, looking ahead to the next six to twelve months, most (51%) Canadians think that interest rates will stay about the same as they are today, while just 4% think they will decrease. Two in ten (18%) believe rates will rise by less than 1 percentage point, while another two in ten (21%) believe rates will rise between 1 and 3 percentage points. Few (5%) believe rates will rise more than 3 percentage points from where they are today. Generally speaking, younger Canadians are more likely to foresee steeper increases in interest rates in the next six to twelve months.

Among those who are at least somewhat likely to purchase a home in the next two years, more prospective home-buyers appear to be attracted to either variable rate (29%, up 10 points since earlier this year) or fixed-rate (46%, up 6 points) mortgages, while the proportion of those intending to take out a hybrid mortgage has declined (25%, down 16 points) since the start of 2011.

These are some of the findings of an Ipsos Reid poll conducted on behalf of RBC between October 6 and 14, 2011. For this survey, a national sample of 2,016 adults from Ipsos' Canadian online panel was interviewed online. Weighting was then employed to balance demographics to ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. A survey with an unweighted probability sample of this size and a 100 per cent response rate would have an estimated margin of error of 1772.2 percentage points 19 times out of 20 of what the results would have been had the entire population of adults in Canada been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to, coverage error and measurement error.

For more information on this news release, please contact:

Sean Simpson
Associate Vice President
Ipsos Reid
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.

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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 2010, Ipsos generated global revenues of e1.140 billion ($1.6 billion U.S.).

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