CIBC Poll: Canadians locking into fixed rate mortgages this spring on expectations that low rates can't last forever

 CIBC Poll: Canadians locking into fixed rate mortgages this spring on  expectations that low rates can't last forever  Despite the latest Bank of Canada call, almost half of Canadians surveyed  expect higher rates next year  TORONTO, April 16, 2014 /CNW/ - Despite the Bank of Canada today holding its  key interest rate steady for the 29(th) consecutive time since September 2010,  a recent CIBC (TSX: CM) (NYSE: CM) poll conducted by Nielsen finds that nearly  half of Canadians don't think low rates will last forever and expect mortgage  rates to be higher a year from now. The poll also shows that Canadians are  increasingly focused on moving to fixed-rate mortgages.  The key highlights of the poll include:            --  47 per cent of Canadians think mortgage rates will increase in             the next 12 months, up from 38 per centwho felt that way last             year;         --  48 per cent would choose a fixed rate mortgage if they had to             make that decision today, the fourth year in a row that fixed             mortgages have been the choice of Canadians;         --  31 per cent would choose a variable rate mortgage today; and         --  19 per centwere undecided as to which type of mortgage they             would choose.  "Even though we've had a relatively stable rate environment for a number of  years, Canadians are being prudent when it comes to mortgage planning and are  factoring in the possibility of higher rates in the near future," says Barry  Gollom, Vice-President, Secured Lending and Product Policy at CIBC. "With  fixed rates near historic lows, Canadians see an opportunity to lock in for a  number of years in order to reduce the risk of expected higher interest costs."  With interest rates as low as they are now, homeowners can take advantage of  the opportunity to accelerate their mortgage payments. For example, one  strategy is to set your mortgage payment at the amount it would be if rates  were 1-to-2 per cent higher. Not only will this help pay down the principal  faster, but it prepares you for future rate increases, says Mr. Gollom.  New homeowners looking for greater predictability  The poll also revealed that younger Canadians were even more likely to choose  a fixed mortgage, with 56 per cent of Canadians aged 25-34 saying they would  lock in to a fixed rate today, a number that has been steadily increasing over  the last four years. In contrast, more established homeowners (aged 45-54)  were among those less likely to lean towards a fixed rate (43 percent).  "For those that have recently taken out a mortgage, and may have additional  expenses or hold other debt, the predictability of a fixed mortgage rate may  be more appealing," says Mr. Gollom.  "However those who have paid off a  sizeable portion of their mortgage are likely less sensitive to rate changes."  "As part of any long term mortgage strategy, homeowners at all stages should  consider their tolerance for fluctuating rates when deciding on whether to  choose a fixed or variable rate - as both have their place," he adds.  Finding the right mortgage is about more than rates  With nearly one in five Canadians (19 per cent) undecided about which type of  mortgage rate they would choose, it highlights the importance of talking to an  advisor to understand your options.  "Although deciding between a fixed and variable rate is an important component  in selecting a mortgage, there are other factors to consider, such as flexible  repayment options," Mr. Gollom says. "An advisor will look at your overall  financial picture, and help you select the right mortgage for you."  KEY POLL FINDINGS  Percentage of Canadians who believe mortgage rates will be higher 12 months  from now, by age:      ____________________________     |        |2014|2013|2012|2011|     |________|____|____|____|____|     |National| 47%| 38%| 44%| 61%|     |________|____|____|____|____|     |18-24   | 49%| 41%| 50%| 65%|     |________|____|____|____|____|     |25-34   | 49%| 41%| 48%| 60%|     |________|____|____|____|____|     |35-44   | 55%| 35%| 40%| 60%|     |________|____|____|____|____|     |45-54   | 43%| 36%| 42%| 63%|     |________|____|____|____|____|     |55-64   | 42%| 40%| 47%| 60%|     |________|____|____|____|____|     |65+     | 42%| 37%| 42%| 57%|     |________|____|____|____|____|  Percentage of Canadians who believe mortgage rates will be higher 12 months  from now, by region:      _____________________________________________     |                         |2014|2013|2012|2011|     |_________________________|____|____|____|____|     |National                 | 47%| 38%| 44%| 61%|     |_________________________|____|____|____|____|     |Atlantic Canada          | 44%| 42%| 56%| 64%|     |_________________________|____|____|____|____|     |Quebec                   | 32%| 33%| 39%| 54%|     |_________________________|____|____|____|____|     |Ontario                  | 51%| 39%| 44%| 66%|     |_________________________|____|____|____|____|     |Manitoba and Saskatchewan| 49%| 46%| 48%| 54%|     |_________________________|____|____|____|____|     |Alberta                  | 56%| 38%| 50%| 57%|     |_________________________|____|____|____|____|     |British Columbia         | 56%| 40%| 38%| 63%|     |_________________________|____|____|____|____|  Percentage of Canadians who would choose a fixed rate mortgage today, by age:      ____________________________     |        |2014|2013|2012|2011|     |________|____|____|____|____|     |National| 48%| 45%| 50%| 39%|     |________|____|____|____|____|     |18-24   | 47%| 39%| 59%| 44%|     |________|____|____|____|____|     |25-34   | 56%| 54%| 51%| 40%|     |________|____|____|____|____|     |35-44   | 53%| 46%| 55%| 51%|     |________|____|____|____|____|     |45-54   | 43%| 45%| 50%| 41%|     |________|____|____|____|____|     |55-64   | 47%| 46%| 50%| 38%|     |________|____|____|____|____|     |65+     | 43%| 35%| 44%| 22%|     |________|____|____|____|____|  Percentage of Canadians who would choose a fixed rate mortgage today, by  region:      _____________________________________________     |                         |2014|2013|2012|2011|     |_________________________|____|____|____|____|     |National                 | 48%| 45%| 50%| 39%|     |_________________________|____|____|____|____|     |Atlantic Canada          | 50%| 37%| 63%| 43%|     |_________________________|____|____|____|____|     |Quebec                   | 48%| 45%| 51%| 45%|     |_________________________|____|____|____|____|     |Ontario                  | 48%| 41%| 49%| 35%|     |_________________________|____|____|____|____|     |Manitoba and Saskatchewan| 47%| 64%| 46%| 33%|     |_________________________|____|____|____|____|     |Alberta                  | 42%| 47%| 49%| 36%|     |_________________________|____|____|____|____|     |British Columbia         | 51%| 49%| 48%| 38%|     |_________________________|____|____|____|____|  Each week, Nielsen Consumer Insights interviews just over 1000 Canadians  through teleVox, the company's national telephone omnibus survey. These data  were gathered in a sample of 1,015 Canadians between February 6-10, 2014. A  sample of this size has a margin of error of +/-3.1%, 19 times out of 20. Some  sample sizes for regional and age groups under Key Findings are smaller than  typically reported and provided only as reference data.  About CIBC  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  Media Centre on our corporate website at www.cibc.com.    SOURCE  CIBC  Caroline Van Hasselt, Director, External Communications, 416-784-6699   orcaroline.vanhasselt@cibc.com  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/April2014/16/c4079.html  CO: Canadian Imperial Bank of Commerce ST: Ontario NI: FIN MMC MOR ECOSURV