Is it time to lock into a medium or longer-term fixed-rate mortgage?

A new poll from CIBC found that the majority of Canadians (74%) would opt for a medium-term or longer-term mortgage, if they were to acquire, refinance or renew a mortgage today.  This included a 27% who thinks now is the time to look beyond the traditional 5-years fixed mortgage for a term of up to 10 years.

“Canadians are recognizing that today’s historically low rates won’t last forever and some are looking for ways to bring predictability to their finances over the long term“, says CIBC.  ‘Most Canadians tend to opt for a fixed rate over 5 years when choosing a mortgage today.  With more than 1 in 4 Canadians now saying they would choose a longer term of 7 or 10 years, we may be seeing the start of a shift to longer terms.

The benefits of a longer-term mortgage

While a longer term mortgage may not be right for everyone, CIBC says that locking in to a medium or longer-term fixed-rate mortgage can reduce the stress that can come with following interest rates.

This shift to longer-term, fixed-rate mortgages signals growing interest by Canadians to gain greater control and certainty over the largest financial obligation.  With a consistent and predictable mortgage payment at today’s low rates guaranteed for many years, Canadians may have the opportunity to pay down their mortgage faster and minimize interest costs, which will help to keep them on track for their broader financial goals.

Finding an expert who can crunch the numbers on a variety of mortgage options while factoring in your other debts, your savings goals and your personal risk tolerance is an extremely important part of the evaluation process.  So call your mortgage broker if you are looking at a longer-term mortgage.

Original article from: