(September 14 – 10:20 ET) –
Canadians are choosing longer-term
mortgages, according to the latest
issue of Canada Mortgage and
Housing Corp.’s Mortgage Market
Trends.
Despite this play by consumers,
Ali Manouchehri, a senior economist
at CMHC reports, “Over 85 per cent
of the time since 1980,
mortgagors would have paid less
in interest payments for a one-year
closed mortgage, renewing it
annually, than they did by opting
for a five-year term.”
The report also notes that
rental apartments have provided
stable and positive cash flows with
lower volatility than both stocks
and bonds in the 90’s. It admits
that returns have generally been
disappointing to investors, however
it notes that rental apartments
have outperformed other real estate
assets over the last 10 years.
-IE Staff
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