Homeowners have it both ways

Combination mortgages increasingly popular.



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As we face the inevitable summer interest rate hike, an increasing number of Canadian homeowners are opting for combination mortgages, in which part of the principal is paid off at a fixed interest rate, and part is paid off at a variable rate.

According to RBC, the trend “indicates that Canadians are trying to maximize low interest rates while at the same time retaining the security of a fixed mortgage.” Which sounds a bit like having your cake and eating it too, but then, what’s the point of having un-eatable cake?

Other interesting news from RBC’s most recent home ownership poll: more men than women prefer variable rate mortgages, fewer Canadians are planning to buy a home this year than last, and mortgage debt loads, as expected, are going up.

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