Homeowners have it both ways - MoneySense

Homeowners have it both ways

Combination mortgages increasingly popular.


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.