Photo: Diana Parkhouse/Flickr
A recent nationwide survey by CIBC found that more Canadians plan on taking longer to pay down their mortgages than in 2013.
While mortgage rates remain historically low, only 55 per cent of Canadians with mortgages were making an effort to repay their debts quicker. This number is down from 68 per cent reported in a similar poll conducted by CIBC last year.
According to this year’s online poll, the average Canadian homeowner expects to be mortgage-free by the age of 58, up from 57 in the 2013 poll.
British Columbians predicted to be mortgage-free at 66 years-old — the oldest result in the country. In contrast, Albertans believed they could pay off their mortgages by 55 years, the youngest in any of the regions polled. The expected “mortgage-free” age in Ontario came in a year shy of the national average at 57 years-old.
When looking at the percentage of Canadians who are trying to pay their mortgages off sooner, respondents in BC come at the bottom of the list, with 47 per cent of province’s homeowners with mortgages taking steps to speed up mortgage repayments. Albertans have been the most active in the country when it comes to paying off mortgage debt quicker, as 65 per cent surveyed have adopted strategies to hasten their payments.
Where are Canadians putting their money if not towards paying off their mortgage? In hopes of raising home values, more Canadians are undertaking home renovations (up 30 per cent from last year). Money spent on leisure activities has also seen a sharp increase, as spending on summer vacations also jumped 20 per cent from the last poll.
The poll was conducted for CIBC by Angus Reid and tallied results 1,509 randomly selected Canadian adults between May 21st to May 22nd, 2014.
Find out more about the survey here.