Cdns want to be mortgage-free faster

Contrary to what the current debt-to-income ratio suggests, Canadians have the right mindset when it comes to dealing with their mortgage debt.

Eager to leave their mortgages behind, almost three-quarters (72%) of Canadians are taking at least one step to becoming mortgage-free quicker, finds a recent Scotiabank poll.

Read: Canadians rely on property to fund retirements

The study also reveals the majority of Canadians (77%) treat their home as an investment rather than an expense. Of those polled, one-third (32%) say they will likely still have their mortgage when they retire.

“What I want Canadians who are feeling a little overwhelmed in paying off their mortgages to know is that paying off their mortgage is totally achievable, and the great news is that a number of Canadians who were in the same position have reached the goal of being mortgage-free,” says David Stafford, managing director of real estate secured lending at Scotiabank. “With rates at historic lows, there’s never been a better time to take years off your mortgage.”

Read: Affordability may create mortgage boooooo-m

The most common step Canadians are taking to pay off their mortgage faster is to increase the frequency of their regular payments (29%). The majority (81%) of respondents agree it is important to become mortgage-free as soon as possible and while 69% report owning a home, 40% say they are living mortgage-free. One-third of Canadians (34%) say they will be relying on their home equity to support them in retirement.

Read: Canada won’t see U.S.-style housing meltdown

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.