Ashley Ford
Province
Increasing interest rates will not deter Canadians from taking out mortgages, says the Canadian Institute of Mortgage Brokers and Lenders.
But the group does acknowledge the latest increase in the bank rate may may prompt some consumers to refinance their mortgages.
“We expect that Canadians will continue to borrow –whether they are taking out a new mortgage, or renewing or refinancing an existing mortgage,” said CIMBL president Ron Swift yesterday.
“The growth of the mortgage market is also due to the volume of new approvals, which not only includes new mortgages but also includes transfers between lenders as well as refinances of existing mortgages,” he said.
A September survey showed that 90 per cent of Canadians are satisfied with the terms of their mortgages.
The residential mortgage market could expand by 10 or 11 per cent by the end of this year, to $660 billion. By the end of 2006, CIMBL anticipates a further 10-per-cent annual growth to $725 billion.
The mortgage-credit market forms a big chunk of the Canadian economy. In the second quarter, there was $617 billion in outstanding residential mortgage credit in Canada.
© The Vancouver Province 2005