A majority of Canadians buying a home or renewing a mortgage preferred the lower upfront cost of a variable rate rather than the peace of mind of a fixed loan in the second half of 2021, according to a new report released Wednesday.
The Canada Mortgage and Housing Corp. (CMHC) said in its bi-annual report on the country’s mortgage industry that 53 per cent of home buyers and loan renewers chose a variable rate mortgage over a fixed one in the final six months of last year. Just over a third (34 per cent) had opted for variable in the first half of 2021.
CMHC pointed to the wider spread between rates offered for fixed and variable mortgages in the latter half of the year as fuelling the shift in preferences.
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