Two in Three (64%) Canadians Foresee Higher Mortgage Rates in Year Ahead
Toronto, ON - Most Canadians don't believe rock-bottom mortgage rates will continue into the foreseeable future, according to the 17th annual Housing Study conducted by Ipsos Reid on behalf of RBC. Two in three (64%) Canadians believe that mortgage rates will rise by this time next year, while just one in ten (12%) think rates will be lower than they are today. One quarter (24%) believes rates will be the same in a year as they are today.
Having been through the process before, existing homebuyers feel strongly about a key piece of advice: three quarters (73%) `strongly agree' that `home buyers need to think ahead and be sure that if rates rise they will still be able to pay their mortgage', with another 24% `somewhat agreeing' with this sentiment. Just 3% `disagree' (1% strongly/2% somewhat) with this piece of advice.
Encouragingly, many existing mortgage holders are using currently-low rates as an opportunity to pay down their mortgage faster as two in three (63%) `agree' (21% strongly/41% somewhat) that they are `taking advantage of low interest rates to pay down more principal on their mortgage'. Moreover, two in ten (18%) mortgage holders say that at some point they've made a lump sum payment to reduce their mortgage, while 16% have doubled up a mortgage payment to reduce their mortgage principal.
Although most (84%) mortgage holders believe they're doing an `excellent' (19%) or `good' (65%) job at paying down their mortgage, some admit to doing a `poor' (14%) or `terrible' (2%) job and one half (49%) `agree' (15% strongly/34% somewhat) that their mortgage is larger than they thought it would be at this stage' in their life. Conversely, the other half (51%) of mortgage holders `disagree' (14% strongly/37% somewhat) that their mortgage is larger than they thought it would be at this stage.
These are some of the findings of an Ipsos Reid poll conducted between January 8-13, 2010, on behalf of RBC. For this survey, a national sample of 2,047 adults from Ipsos' Canadian online panel was interviewed online. Weighting was then employed to balance demographics and 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% response rate would have an estimated margin of error of +/-2.2 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
Research Manager
Ipsos 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 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 2009, Ipsos generated global revenues of e943.7 million ($1.33 billion U.S.). .
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