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Loan rates manageable, poll shows

Most Canadians believe their mortgage rates are manageable, despite recent hikes, according to a recent report released by the Canadian Institute for Mortgage Brokers and Lenders.

The information, gathered by Canadian public opinion firm Pollara in a phone survey in February, indicates 42 per cent of Canadian residential mortgage holders polled have not seen their overall standard of living significantly affected by recent mortgage rate increases.

'As the spring home buying season begins, interest rates remain at a historic low and mortgage holders continue to be satisfied with their rates,' said Ron Swift, president of the mortgage brokers institute.

'Our latest survey reveals that Canadians find their current mortgage rates manageable, despite increases over the past eight months. In addition, although mortgage holders anticipate further rises, the study suggests that a majority will be able to tolerate an increase of up to 1 per cent. That's great news for the marketplace.'

Mortgages now held by Canadians have an average interest rate of 4.9 per cent. Sixty-six per cent of consumers said they expect rate increases in the near future.

In anticipation of a rise in interest rates, consumers are more likely to renew their mortgages early to lock in to current rates.
The survey firm contacted 1,015 residential mortgage holders in Canada. The sampling is considered accurate within 3.1 percentage points, 19 times out of 20.

For a copy of the survey, visit http://www.cimbl.ca. "

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