The popularity of hybrid mortgages in Canada

    Talk to any financial planner and almost the first word of his mouth will be diversification. If you do not put all your eggs in one basket makes sense when financial planning, maybe we should think about when making decisions that mortgage. Hybrid mortgages are an excellent way to diversify your mortgage and gain exposure to fixed and variable rates.

    Hybrid or combination mortgages are split 50/50, with half of the mortgage interest rate is fixed and the other half is variable. Those who choose a hybrid mortgage enjoy the security of fixed rate mortgages offer, but still have the opportunity to save on variable interest rates remain stable or fall. In addition to the terms of the mortgage can also be divided, and renew at different times, giving greater flexibility.

    (In some cases, the mortgage can be split 70/30 or even split into 3 different mortgages based on what customers want.)

    The trend toward hybrid mortgages in Canada

    According to 17 RBC Annual Survey of Owners, those who plan to buy a home in the next 2 years, 40% want a hybrid or a mortgage. Hybrids currently account for less than 10% of the mortgage market and the majority are still the choice of a fixed mortgage. Although the figure represents 40% of what you plan to do and, of course, many do not continue. The figure is showing an increasing trend and hybrid mortgage interest in Canada. This increase in popularity could be due to increased promotion of financial institutions, and the uncertainty that many people have about the trend in interest rates.

    Not all lenders offer mortgages combination, but with more people interested can expect many of them carrying the product in the future. Currently, Scotland, RBC Financial Merix, and HSBC are some of the lenders that offer mortgages in Canada combinations.

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The popularity of hybrid mortgages in Canada

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