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
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Through the Economic Straight Talk Newsletter Ian R. Campbell shares his perspective on the world economy, the financial markets, and natural resources. A recognized business valuation authority, he founded Toronto based Campbell Valuation Partners (1976), Stock Research Portal (2007) a source of resource companies market data and analytic tools, and Economic Straight Talk (2012). The CICBV* annually funds business valuation research in his name**. Contact him at icampbell@srddi.com.
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Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/