Canadians and Home Mortgages - A Surprising Statistic!

By: Ian Campbell | Thu, May 24, 2012
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Why Read (if you are a Canadian): Because, if accurate, this is a surprising, and arguably foreboding, statistic.

Featured Article: An article reports that a recent Bank of Montreal survey reported that 51% of Canadians plan to retire prior to their home mortgages being paid out in full. The article reports that Phil Soper, chief executive of Royal LePage Real Estate Services, a major Canadian realtor, has said that times have changed - and that he believes Canadians can handle the burden of post-retirement mortgage balances. Mr. Soper is reported as having attributed this willingness to carry post-retirement mortgages to:

Commentary: In Canada residential mortgage interest incurred by homeowners is not deductible for personal income tax purposes, unlike residential mortgage interest that is deductible by homeowners in the United States. For this and other reasons it follows that these survey results may be seen as highly surprising on a number of counts:

In the end, if the reported survey is statistically valid, going forward the attitude toward home mortgages it conveys does not auger well for those Canadians who fall into the 51% who plan to carry house mortgages into their retirement years. Hence, the survey results do not auger well for Canadians generally, since how the majority behaves has to impact the minority to some degree.

Half of Canadians plan to retire with mortgage: survey
Source: The Financial Post, Garry Marr, May 16, 2012
Reading time: 4 minutes



Ian Campbell

Author: Ian Campbell

Ian R. Campbell, FCA, FCBV
Business Transition Simplified

Through his website and his Business Transition & Valuation Review newsletter Ian R. Campbell shares his perspectives on business transition, business valuation and world economic and financial markets influences on those two topics. A recognized business valuation and transition authority, he founded Toronto based Campbell Valuation Partners Limited (1976). He currently is working to bring his business valuation and transition experience to both business owners and their advisors in our new economic, business and financial markets normal.

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