Vancouver, BC – A poll hosted on the Angus Reid Forum for Coast Capital suggests that current low interest rates have influenced the decision of almost one-third of homeowners to renegotiate their existing mortgages – while also creating pressure among others to consider entering the housing market.
The poll results show that 30% of respondents who own a home have renegotiated their mortgage in the past 12-months, to take advantage of historically low interest rates. A further 23% say they are considering renegotiation.
“Renegotiating your current mortgage can make sense depending on your circumstances,” explains Lisa Colangelo who leads Coast Capital’s retail banking division. “Sit down to talk with a financial advisor who can help you do the math. Together, you can determine whether it makes sense or if you should wait until your current term matures”
Low interest rates also appear to be having an influence in the decisions of potential homeowners. Almost one-in-five survey respondents say they are feeling pressure to get into the housing market – and 70% of those point to low interest rates as the reason.
While the low interest environment offers a great opportunity to get into the market, Colangelo says rates are only one piece of the puzzle when it comes to making the decision to buy a property.
“While current low interest rates may be inviting for would-be homeowners, it is important not to let it pressure you into making a move that you may regret as the economy rebounds and rates rise,” Colangelo explains. “Rates will not remain at this historically low level with some economists suggesting that we will start to see movement in the next 18 months. Stress testing your finances, which you can do with the help of your financial advisor or planner, is critical to making the most informed and sound decision.”
The poll results show that the pandemic has also created a challenge for many homeowners in meeting their mortgage obligations, despite the low-rate environment. Approximately 20% say they have had to use additional savings or credit to make payments and 12% have had to access mortgage payment deferrals in the past year.
On a positive note, 87% of BC homeowners say they are confident in their recent mortgage decisions, with lower interest rates playing a key role in driving this sentiment for 54% of respondents.
If you’re planning your mortgage renewal or buying your first home, consider reaching out to Coast Capital to get advice on the next best steps for you and your financial wellbeing. Visit: https://www.coastcapitalsavings.com/
About this survey
From April 29th to May 2nd, 2021, an online survey was conducted among 810 British Columbia residents aged 19+ who are members of the Angus Reid Forum. For comparison purposes only, the sample plan would carry a margin of error of +/- 3.4 percentage points, 19 times out of 20. Discrepancies in or between totals are due to rounding.
Further details about the survey can be found here.
About Coast Capital Savings
Coast Capital is Canada’s largest credit union by membership and B.C.’s first federal credit union. Owned by its nearly 600,000 members, Coast Capital offers banking and investment services digitally across Canada, and through its 50 branches in the Metro Vancouver, Fraser Valley, Okanagan, and Vancouver Island regions of British Columbia. A Certified B Corporation, Coast Capital is committed to balancing profit and purpose, investing 10 per cent of its budgeted bottom line in community organizations that empower young Canadians. Coast Capital is a B.C. Top Employer, one of Canada’s Best Managed Companies and is also recognized as one of Canada’s Most Admired Corporate Cultures™ as a Hall of Fame designate.