Home Loan Borrowers Turning to Fixed Rate Mortgages

A recent report by the CBC shows those looking for home loans are showing a preference for fixed rate mortgages. This could be due to the belief that interest rates are heading slowly upward for the next 5 years. The CBC cited data compiled by the Canadian Association of Accredited Mortgage Professionals which showed 86% of borrowers taking out mortgages in 2009 opted for fixed rates. The CAAMP studied more 40,000 mortgages issued in 2009, worth $10 billion in total, to look for lending trends. The $10 billion examined is a just a small portion of the Canadian mortgage market, it reflected borrowing by first time home buyers, the borrowers CAAMP deemed to be most vulnerable to rate fluctuations.