‘Homemade savings’ the new RRSP
Financial Post, Garry Marr
Who needs to save for retirement when your home is the new RRSP?
“I wouldn’t advocate it,” says Benjamin Tal, senior economist with CIBC World Markets, about considering your home a big part of your nest egg.
But that’s exactly what Canadians are doing. Mr. Tal says that as of the second quarter, 38.5% of Canadian wealth is tied up in home ownership, a huge percentage when one considers it in a historical context. Just 20 years ago, the percentage of wealth in home ownership was about 16.3%.