It’s become the new retirement savings plan — owning a home.
What else is one to make of a country where about half of Canadians said they didn’t make a contribution to a registered retirement savings plan this year but close to 70% of households now own their home.
Your money grows tax free . . . Even in your RRSP, there are forced withdrawals and it’s fully taxable [when taken out]
“Your money grows tax free,” says Jason Heath, a fee-based certified financial planner with Objective Financial Partners Inc. “Even in your RRSP, there are forced withdrawals and it’s fully taxable [when taken out].”
The main advantage of home ownership is the forced savings it generates. The real estate industry has its tired lines like “you can’t live in your investment” or “you have to live somewhere” but it’s the discipline of payments a mortgage forces that makes it a decent investment for most Canadians.