Edmonton Real Estate Blog

Mortgage Survey: Canadians Favour Fixed Mortgages Over Variable

The firm of Harris Decima recently conducted a survey across Canada regarding mortgages.  In it they found that for the third straight year, Canadians tend to favour fixed rate mortgages over the variable. Another find, on the issue of the mortgage rates themselves, was that the more Canadians are of the belief that the low mortgage rates of today will be around for at least the next year.

On the fixed versus variable mortgage issue, 45 percent of those surveyed would select a fixed mortgage. Of those in the 25 to 34 year old demographic, 54 percent would make a similar choice. This indicates that most first home buyers would lean this direction.  Some 26 percent of those surveyed would choose a variable mortgage, and 25 percent were in the uncertain column. That 25 percent is a marked increase over the 16 percent that were in the undecided column in the 2012 survey.

Colette Delaney, CIBC Executive Vice President of Mortgage, Lending, Insurance and Deposit...

Cautious Investors On The Lookout For That Canadian Property Bubble

Can it be as simple as the fact that drama sells papers? The rumour of a Canadian property bubble just won’t go away. Just as soon as statistics shoo it under the nearest rock, out it pops. Is the recent spate of articles a tease, or journalistic types harbouring justified concern?

The Canadian Real Estate Association, or CREA, released statistics that have calmed concerns of an outright crash, but some analysts are insisting that a correction of some type, although expected to be moderate in nature, will occur.

In January of this year, home sales increased by 1.3 percent over December of 2012. For the last five months this fairly flat tendency in the market hardly signals a crash, but more the moderate adjustment advocated by some. Other than the sharp decrease seen this past August, the markets have been fairly steady. That drop was attributed to the change in mortgage rules in July more than anything else.

In about half of the local markets CREA looked...

No Interest Rate Hike Expected In Near Future Per Bank Of Canada

The Bank of Canada concedes that the nation’s economic picture is currently a bit weaker than expected, that same entity did predict a reversal in the near future. Growth on the economic front in Canada did not quite live up to the predictions by the Bank or a considerable number of financial analysts. At the same time the housing market and consumer debt situation seem to be stabilizing. In the United States and across Europe, there are still concerns about debt and the markets, but things are improving.

All of this adds up to the Bank of Canada deciding that interest rates should remain where they are, and stay there for the foreseeable future.

In a rare move, the announcement that the Bank of Canada was not raising the interest rate was coordinated with the release of their Monetary Policy Report. This quarterly publication outlines all the factors, domestic and global, that affect Canada’s economy.

The interest rate will remain at one percent, where...