The Canadian Association of Accredited Mortgage Professionals (CAAMP) released their annual report on Monday stating that 79% of new mortgages taken out this year have been fixed rate. Only 10% have been variable while 11% are a combination.
Perhaps one of the main reasons we are locking in may very well be that there is virtually no difference in spread between fixed and variable. Secondly, can any one tell me when they have ever seen the five year fixed rate lower? So why not take advantage of these all-time lows and have some peace of mind knowing exactly what your obligation will be for the next five years. There are so many uncertainties that we face on a daily basis that impact our financial well being (the local and global economy, stock markets, etc). One less thing to worry about is good!
CAAMP also reported that a record 47% of borrowers who took out a new mortgage in 2012 did so with a mortgage broker! That is excellent news in our growing industry. Canadian homebuyers are becoming much more aware these days of the benefits with working with a mortgage broker rather than with the bank directly or with one of their mortgage specialists. I am deeply honoured and feel very blessed that many of the clientele we have helped since 2001 continue to call us for their mortgage needs and advice to this day. In addition, they have been very diligent to encourage their friends, co-workers, and family to give us a call so that we may be able to help them rather than they rely on the biased advice they get from their bank alone.