CIBC Mortgage Poll: Canadians think the time is right to lock into a fixed mortgage

CIBC Mortgage Poll: Canadians think the time is right to lock into a fixed 
mortgage 
Annual poll finds nearly half of all Canadians would choose a fixed rate 
mortgage; more Canadians believe today's low interest rates will remain 
unchanged over the next year 
TORONTO, March 14, 2013 /CNW/ - A new CIBC (CM: TSX) (CM: NYSE) Poll conducted 
by Harris/Decima reveals Canadians are leaning towards fixed-rate mortgages 
this Spring, marking the third consecutive year Canadians have chosen fixed 
over variable. The poll also reveals a change in Canadians' expectations for 
interest rates, with more Canadians now believing today's low rates will 
remain in place for at least the next 12 months. 
Highlights of the poll include: 


    --  46 per cent of Canadians believe today's low rates will remain
        unchanged over the next year, a notable increase from the same
        poll two years ago when only 24 per cent of Canadians believed
        interest rates would remain low
    --  45 per cent of Canadians said they would choose a fixed rate
        mortgage if they had to decide today; fixed rate mortgages were
        most popular among 25 - 34 year olds, with 54 cent stating they
        would select a fixed rate mortgage, likely due to the
        predictability a fixed rate offers to first time home buyers
    --  26 per cent of Canadians said they would choose a variable rate
        mortgage
    --  Another 25 per cent said they were uncertain which mortgage
        would be right for them, an increase over the 16 per cent who
        were undecided in 2012

"Deciding between a fixed or variable rate mortgage is one of the most 
important decisions in finding a mortgage that is right for you," said Colette 
Delaney, Executive Vice President of Mortgage, Lending, Insurance and Deposit 
Products, CIBC.

Ms. Delaney noted that balancing debt, savings and other financial goals is 
important to achieving what matters to you in the long term. A predictable 
mortgage payment at today's low interest rates can help you to pay down your 
mortgage faster and minimize interest costs, which can keep your broader 
financial goals on track. "Your mortgage should fit your life, you shouldn't 
have to re-arrange your life for your mortgage, and that's where an advisor 
can help you determine the mortgage terms and payment that fit with your 
financial goals."

While fixed mortgages were popular in the poll, this year's results also saw 
an increase in Canadians uncertain as to whether a fixed or variable rate 
mortgage would be right for them, highlighting the importance of getting 
advice about which option is the best fit with your finances.

When will rates rise? Canadians see rates remaining low

46 per cent of Canadians believe today's low rates will remain unchanged over 
the next 12 months. This is a change from past poll results, where Canadians 
were more likely to believe that these historically low mortgage rates would 
be increasing in the short term.

This trend suggests Canadians could face challenges in the future if they 
don't consider rate changes as part of their long term mortgage strategy.

"Our poll suggests that some Canadians are growing accustomed to the low rates 
we are experiencing, however it's important to take a long term view when 
deciding which mortgage is right for you," said Ms. Delaney. "You need to plan 
ahead for your next mortgage term and consider the impact to your budget if 
you renew at higher rates a few years down the road."

Low Rates an Opportunity to Accelerate Debt Repayment

In a poll released by CIBC in January 2013, Canadians identified paying down 
debt as their number one financial priority for 2013 for the third year in a 
row. Ms. Delaney notes that low mortgage rates can help Canadians to 
accelerate their debt repayment. "With debt repayment a top priority for 
Canadians again in 2013, there is an opportunity to take advantage of today's 
low mortgage rates to reduce your mortgage principal faster."

To further accelerate debt repayment, one strategy offered by CIBC is to set 
your mortgage payment at the amount it would be if rates were one to two per 
cent higher. Not only does this help to reduce the principal amount owing, but 
it also prepares Canadians for future rate increases.

"Your mortgage is one component of your overall financial plan, which means 
you can't choose a mortgage purely on rate" added Ms. Delaney. "A number of 
factors, including amortization, the flexibility to make extra payments, and 
whether or not you have other debt should all be considered when choosing the 
mortgage that's right for you."

KEY POLL FINDINGS

Percentage of Canadians who would choose a fixed rate mortgage if they were to 
acquire, refinance or renew a mortgage today, by region:

 ________________________________________
|                         |2013|2012|2011|
|_________________________|____|____|____|
|National                 | 45%| 50%| 39%|
|_________________________|____|____|____|
|Atlantic Canada          | 37%| 63%| 43%|
|_________________________|____|____|____|
|Quebec                   | 45%| 51%| 45%|
|_________________________|____|____|____|
|Ontario                  | 41%| 49%| 35%|
|_________________________|____|____|____|
|Manitoba and Saskatchewan| 64%| 46%| 33%|
|_________________________|____|____|____|
|Alberta                  | 47%| 49%| 36%|
|_________________________|____|____|____|
|British Columbia         | 49%| 48%| 38%|
|_________________________|____|____|____|

Percentage of Canadians who would choose a fixed rate mortgage if they were to 
acquire, refinance or renew a mortgage today, by age:

National   45%

18-24      39%

25-34      54%

35-44      46%

45-54      45%

55-64      46%

65+        35%

Percentage of Canadians who would choose a variable rate mortgage if they were 
to acquire, refinance or renew a mortgage today, by region:

 ________________________________________
|                         |2013|2012|2011|
|_________________________|____|____|____|
|National                 | 26%| 32%| 32%|
|_________________________|____|____|____|
|Atlantic Canada          | 25%| 25%| 23%|
|_________________________|____|____|____|
|Quebec                   | 32%| 37%| 31%|
|_________________________|____|____|____|
|Ontario                  | 26%| 31%| 33%|
|_________________________|____|____|____|
|Manitoba and Saskatchewan| 18%| 37%| 31%|
|_________________________|____|____|____|
|Alberta                  | 26%| 32%| 35%|
|_________________________|____|____|____|
|British Columbia         | 22%| 27%| 31%|
|_________________________|____|____|____|

Percentage of Canadians who believe mortgage rates will be the same 12 months 
from now, by region:

 ________________________________________
|                         |2013|2012|2011|
|_________________________|____|____|____|
|National                 | 46%| 42%| 24%|
|_________________________|____|____|____|
|Atlantic Canada          | 38%| 32%| 19%|
|_________________________|____|____|____|
|Quebec                   | 48%| 49%| 28%|
|_________________________|____|____|____|
|Ontario                  | 46%| 42%| 21%|
|_________________________|____|____|____|
|Manitoba and Saskatchewan| 45%| 39%| 23%|
|_________________________|____|____|____|
|Alberta                  | 47%| 40%| 27%|
|_________________________|____|____|____|
|British Columbia         | 45%| 41%| 25%|
|_________________________|____|____|____|

*Each week, Harris/Decima interviews just over 1000 Canadians through teleVox, 
the company's national telephone omnibus survey. These data were gathered in a 
sample of 1,006 Canadians between January 24-28, 2013. A sample ofthis size 
has a National margin of error of +/-3.1%, 19 times out of 20

CIBC is a leading North American financial institution with nearly 11 million 
personal banking and business clients. CIBC offers a full range of products 
and services through its comprehensive electronic banking network, branches 
and offices across Canada, and has offices in the United States and around the 
world. You can find other news releases and information about CIBC in our 
Press Centre on our corporate website at www.cibc.com.







Sean Hamilton, Director, Media Relations: (416) 304-8456 
orsean.hamilton@cibc.com

SOURCE: CIBC

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CO: Canadian Imperial Bank of Commerce
ST: Ontario
NI: FIN ECOSURV 

-0- Mar/14/2013 10:00 GMT