The vast majority of Quebecers say they are concerned about the upcoming renewal of their mortgage, and many would consider switching to a fixed rate after their variable monthly payments “doubled or even tripled,” according to a recent survey by Royal LePage, which was released on Thursday.
According to the survey conducted by Nanos, of the 94% of Quebecers who took out their loan from a major lender, 75% would have opted for a fixed rate and only 20% would have opted for a loan with a variable rate (open or closed). . . ).
But with around 13% of home mortgage holders planning to renew their contract next year, and 15% within 12 to 18 months, as many as 40% of those with a variable rate loan would consider switching to a fixed rate loan Karen Yolevski, Chief Operating Officer of Royal LePage Real Estate Services Ltd.
“Some Canadians with adjustable-rate mortgages have seen their monthly payments double or even triple over the past 18 months, reflecting the Bank of Canada’s aggressive rate hike campaign to “stop high inflation,” she explained in a press release.
Furthermore, 33% of variable or hybrid rate mortgage holders admit that the Bank of Canada’s interest rate increase would have put their household under a lot of financial pressure, while 42% would have suffered only “somewhat small pressure”.
Almost half (45%) of people with an adjustable rate or hybrid mortgage have had to reduce the amount of discretionary spending they have to cope with increasing mortgage payments.
“Looking ahead, some owners or potential buyers are hoping that interest rates will fall towards the end of 2024, but it seems that the era of extremely low interest rates is a thing of the past,” Martin analyzed for his part. Philippe, residential and commercial real estate agent Royal LePage Patrimoine in Repentigny.
“The good news is that we are probably at or near the peak of interest rate hikes, which will allow households to plan their budgets better in the coming months,” he added.