A survey commissioned by Prospera Credit Union has found that British Columbians would give up payment flexibility to take advantage of historically low mortgage rates.
The poll, conducted by Ipsos Reid, found that 60% of British Columbians under the age of 45 who have a mortgage or are in the market for a mortgage, were willing to give up some mortgage payment flexibility in exchange for a lower rate.
About 59% of respondents didn't know that mortgage holders pay higher interest in exchange for making lump sum payments against their mortgages.
According to the survey, the concern over interest rates revolves around a household's cash flow. About 75% of respondents said they were paying closer attention to their regular household budget, taking into account their monthly mortgage payments.
Traditional long-term cost-savings measures include increasing mortgage payment amounts and decreasing a loan's amortization. However, given today's economy, many homeowners said they would prefer to see the immediate savings from a lower mortgage rate. With mortgage rates accounting for approximately 25% of an average Canadian family's monthly expenses, the savings can be significant.