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Canadians' Mortgage Regrets and Financial Realities
August 30, 2023 | Posted by: Angela Robinson
Owning a home is a long-term investment that many Canadians view positively, despite encountering unexpected expenses along the way. However, recent shifts in interest rates and inflation have led some homeowners to rethink their mortgage choices.
A survey by The Real Estate and Mortgage Institute of Canada (REMIC) sheds light on homeowners' sentiments:
30% regret their current mortgage choice.
22% find it unaffordable due to rising interest rates.
12% feel trapped in high-interest agreements.
Surprisingly, 30% wouldn't have opted for a smaller home even if they'd known about rising mortgage rates.
Knowledge Gap:
41% don't know the current Canadian interest rate.
Over half admit they can't recall their monthly mortgage payments without looking them up.
More than 2/3 are uncertain about payments at a 5% interest rate.
Blind Trust in Banks:
Nearly 60% secured mortgages through their banks.
43% believe banks consistently offer the best rates.
58% trust that loyalty equates to favorable rates.
Experts caution against blindly relying on banks, as they might not consider homeowners' quality of life.
Mortgage Duration Expectations:
About 50% anticipate paying off mortgages around age 60.
8% foresee being mortgage-free by 70, 5% by 75+, and 8% at 80+.
Experts emphasize the need for better mortgage education and recommend working with licensed brokers for balanced advice.
Takeaway: While homeownership is valued, recent financial shifts have led many Canadians to reconsider their mortgage choices. Educating oneself about mortgage basics and consulting brokers for well-rounded advice could lead to better decisions in the long run.
Stay informed and make the best choices for your homeownership journey! Contact us at 780 701 3888 or marc@albertamortgagepros.ca
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Full article: https://www.wealthprofessional.ca/investments/alternative-investments/3-in-10-canadian-homeowners-regret-their-mortgage-choice-1-in-5-cant-afford-it/378815
