The following is a sponsored story from Investors Group, a leader in delivering personalized financial solutions to Canadians through a network of over 4,700 consultants located across the country.
Wealthy Canadians aren’t showing up at open houses with suitcases packed with cash. Instead, many view carrying a mortgage as a planning tactic and an element of a sound financial strategy.
A recent survey by Investors Group found that mortgages aren’t only used when paying with cash is not an option — mortgages play a big role in the investment strategies of many high net worth Canadians.
According to the survey, one-fifth of Canadians with over $500,000 in investable assets have a mortgage, with an average size of $157,000.
Surprised? Here are nine more essential facts uncovered by the Investors Group’s survey:
1. 67 per cent of respondents with mortgages said they have the cash available to pay for their home in full
2. More than one-quarter of wealthy Canadians with mortgages don’t have plans to fully pay off their mortgages before retirement
3. Aside from their primary residence, 32 per cent of high net worth Canadians own other residential or commercial properties
4. Among those Canadians who own multiple properties, 11 per cent have purchased a home for their parents or kids
5. Among those Canadians who own multiple properties, most have getaway spaces: 51 per cent own recreational properties
6. Many of the high net worth Canadians with multiple properties are landlords, with 42 per cent owning investment rental properties
7. Only eight per cent of high net worth Canadians surveyed are concerned about interest rates rising in the next year
8. …but 18 per cent of them are worried about interest rates rising in the next five years
9. Seven-in-10 of high net worth Canadians say they would not think about purchasing property without reviewing it as part of their overall financial plan
Financial advisors from Investors Group are ready to help you look at the entire picture when considering your investment options. Visit InvestorsGroup.com to learn more about how they can assist you.