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Wealth Professional | 02 Feb 2015, 09:42 AM Agree 0
Homeownership in the U.S. is lower than it’s been since 1994. What’s the Canadian experience?
  • Tim Affolter CFP CLU ChFC | 02 Feb 2015, 04:09 PM Agree 0
    In regard to the high number of people who keep mortgages on their homes, the proliferation of HELOCs probably has something to do with it. I have clients with HELOCs who don't use them currently, but they are there for emergencies or opportunities. I believe those will still show up as a mortgage on the stats.

    I think we also need to think of proper asset allocation of total wealth when it comes to home ownership. The ancient advice to keep 25% of your wealth in each of the four major asset classes (real estate, stocks, bonds and commodities) is not followed very well these days. As a result of concentrating our wealth in our homes, we may experience higher volatility in our overall wealth than we should. A mortgage on your home might help to rebalance your wealth, providing that it is used for investment not lifestyle spending.
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