Mortgage debt

One-third of Canadians are taking advantage of low interest rates to accelerate mortgage payments, plus info on RSP withdrawls and more.

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  • A survey of 2,000 Canadian mortgage holders by the Canadian Association of Accredited Mortgage Professionals (CAAMP) found home owners are comfortable with their house debt and at least one-third are taking advantage of current low interest rates to accelerate payments. CAAMP also found a correlation with the tightened mortgage lending rules and a slowdown in Canadian housing resale activity as more first-time buyers are shut out of the market.
  • More Canadians (36%) took money from their RSPs this year to pay for things this year, according to Scotiabank. The average withdrawl was also up, to $24,531. The top reason cited for tapping registered accounts was buying a first home (40%). Fourteen per cent of Canadians took money out of their RSPs to cover day-to-day living expenses while 6% took money out to pay for a vacation. ”Investing in a home and investing in retirement are both important parts of life and finding a way to balance both is key,” said Bev Moir, ScotiaMcLeod wealth adviser. “If Canadians are going to take money out of their RSP for a major purchase like a house, they need to have a plan in place to return that money as soon as they can so they don’t limit their options in the future. A financial adviser can work with you to map out the best strategy to achieve your goals, particularly if you’re dipping into your RSP for day-to-day expenses.”
  • Speaking of planning, Monday kicks off Financial Planning Week in Canada. Here’s a FPSC video featuring average Canadians talking about how planners helped them.

2 comments on “Mortgage debt

  1. When I was younger I contributed to my RRSPs with the intention of taking it out under the First Time Home Buyer plan. It would be interesting to know the average withdrawal amount when you exclude the 40% that used the HBP for its intended use.

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  2. It's too bad so many of us let the ability to borrow for our homes make us feel like we can afford more than we really should. Like it's assumed we will be in debt our entire lives.

    Reply

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