The possibility of mortgage rates rising in 2007 seems to be of much less concern across Canada, according to RBC’s 14th Annual Homeownership Survey.

In fact, over half (57%) of Canadians believe mortgage rates will drop or stay the same, compared to 31% last year. The poll also reveals that 49% of Canadians are less apprehensive about interest rate increases, compared to 44% in 2006.

“When we assess the consumer sentiment being expressed in this year’s study, a picture emerges of confident Canadians weighing their homebuying options in a very positive light,” explained Catherine Adams, RBC’s vp of home equity financing.

At the same time, while over half of Canadians (59%) believe housing prices will rise in 2007, homebuying intentions are holding steady, with three in ten Canadians (28%) planning to buy a house over the next two years.

As for the value Canadians place on homeownership, the vast majority (90%) think purchasing a home is a good investment, according to RBC’s poll. As well, the percentage of Canadians who estimate that the market value of their homes has increased by 50% or more over the past two years, has doubled since last year’s survey (11% compared to 6%.)

“It’s clear an overwhelming majority of Canadians believe purchasing a home is a good investment. In fact, the average Canadian estimates their home has increased by 22% in the last 2 years,” Adams added. “And the ‘buy now’ message is coming through loud and clear across all age groups – from 25 through to 55 plus.”

Of those Canadians planning to buy a house within two years, an increasing number are looking at a shorter purchasing window. Over half (58%) of all Canadians are saying buy now, don’t wait for next year. Forty-four per cent (up from 37% in 2006) are looking at buying within the next 12 to 18 months.

These are some of the findings of an RBC poll conducted by Ipsos Reid between January 18 and 22. The online survey is based on a randomly selected representative sample of 2,404 adult Canadians. With a representative sample of this size, the results are considered accurate to within +/-2.0 percentage points, 19 times out of 20, of what they would have been had the entire adult Canadian population been polled.