TORONTO â€“ Despite close to a decade of historically low interest rates, Canadians’ behaviour is surprisingly conservative on the mortgage front, according to a recent survey commissioned by ING DIRECT, Canada’s sixth largest mortgage lender. The poll, conducted by Vision Critical, found that more than a third (36%) of those Canadians carrying a mortgage have conventional mortgages and three quarters (75%) have mortgages with amortizations of 25 years or less.

"At ING DIRECT we’ve always encouraged our clients to put a larger down payment on their home if they can, and to pay off more of their mortgage whenever they have the opportunity. It looks like Canadians are heeding this advice and considering the impact of their choices, both today and over the long term," says Peter Aceto, President and CEO at ING DIRECT.

Those living in BC were most likely to take out a conventional mortgage, with more than half (52%) indicating they put a down payment of more than 20 per cent on their homes. In Ontario, 41 per cent have a conventional mortgage, followed by Alberta (31%) and Quebec (27%). Of those likely to take out a mortgage in the next six months, 21 per cent plan to take out a conventional mortgage.

Not surprisingly, almost three quarters of respondents (71%) indicate that rate is the most important factor when choosing a mortgage provider. Less than one fifth of Canadians look at other options like terms (10%) and prepayment options (6%).

"With mortgage rates making their return to normal levels, it’s natural for homeowners to be looking at rates when shopping for a mortgage, but there are other factors people should consider,” says Aceto. “Putting some extra money towards your mortgage whenever possible really adds up, and can save you thousands of dollars over the life of your mortgage. Flexible prepayment options are certainly a feature homeowners should look for when shopping for a mortgage."

ING DIRECT’s unmortgage® allows Canadians the freedom to increase their regular payments by up to 25% of the original payment amount each year and to make lump sum payments throughout the year, totalling up to 25% of the original mortgage amount. According to the poll, over half of Canadians (53%) plan to pay off their mortgage sooner than their amortization period, meaning they will pay less interest and save significantly over the long term.

Canadians living in Alberta plan to pay off their mortgages sooner, with nearly two thirds of respondents indicating they plan to pay off their homes before the end of their amortization period (64%) Quebecers are least likely to repay their mortgages sooner, with 32 per cent responding they hadn’t planned on doing so. One fifth of Ontarians (21%) and British Columbians (20%) have no plans to pay off their mortgages early.