A new poll conducted for BMO reveals how much Canadians expect to pay in mortgage interest over the life of their home loan. The average amount the respondents estimated they would pay before becoming mortgage free is around $60,000. In BC residents expect to pay the highest in the country at $95,891 while those in Atlantic Canada expect the lowest amount of mortgage interest to be paid at $35,454.
When asked about interest rate trends 60 per cent believe that rates will climb over the next five years; 48 per cent expect that rise to be small while 12 per cent are predicting a sharper hike. Two thirds of respondents have a fixed rate mortgage.
"In any interest rate environment, it's important that Canadians stress-test their mortgage against a higher rate to ensure they can afford it over the long term," said Martin Nel, Vice President of Personal Lending & Investment Products, BMO Bank of Montreal.
The survey also revealed that the average age at which Canadians expect to be mortgage free has increased by a year to 59 since last year’s poll. Almost a third though expect to be paying their mortgage until they are 65.
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