Canadians "bullish" on housing, says RBC.
March 29, 2005 - Canadians are bullish on housing, according to a survey of the homebuyer market by Royal bank Financial Group.
RBC says 91 per cent of homeowners and 79 per cent of renters believe buying a
home is a good investment, proving that Canadian residents are continuing to bank on the value of their homes.
"No matter what the markets are doing, people have faith in the ongoing value of their homes. In fact, the number of respondents indicating that buying a home is a 'great' investment has more than doubled since 1999," says Clayton Van Esch, senior manager of home equity financing at Royal Bank.
When it comes to paying for their homes, almost half of those who are likely to buy in the next two years will put down 25 per cent or more. The survey also notes Canadians mistakenly believe the average minimum down payment necessary to purchase a home is 11 per cent.
"Forty per cent of Canadians did not know that home equity-based loans are the most affordable type of credit available," says Mr. Van Esch.
Fifty-six per cent of existing homeowners - and 90 per cent of homeowners age 25-34 - have a mortgage on their homes. The typical Canadian with a mortgage has $109,504 left to pay and expect it will take 12 years to pay off.
In the mortgage market, 30 per cent of Canadians say they prefer a fixed rate, while 23 per cent favour a variable rate. Women are more likely than men to prefer fixed rate mortgages.
More than half of Canadians expect mortgage rates to be higher next year.
© Copyright Ottawa Business Journal 2005