Survey Finds House Wins as Good Investment

According to RBC Royal Bank's 13th annual homeownership survey, 90% of Canadians, the highest level since 1998, say buying a home is a good investment. And 17% of homeowners say their homes will be their primary source of retirement income.

"There's a definite consensus among Canadians when it comes to the financial benefits of owning a home," said Catherine Adams, RBC's v-p, home equity financing. "In fact, the average homeowner estimates that his or her home has gone up 18% in value over the last two years."

This year's survey reveals 72% of Canadians expect housing prices to rise over the next year. While Canadian homeowners estimate the average market value of their homes at $214,337, that is somewhat less than the national average of $258,274 reported by the Canadian Real Estate Association in January 2006.

RBC also notes 60% of Canadian homeowners currently hold a mortgage; that's up 4% from 2005 and 10% more than 2000. The average amount owing is $95,840.

When it comes time for renewal, half of mortgage holders will likely go with a fixed-rate mortgage, 25% say they will select a variable rate, and another 25% plan to go with a combination of both. Almost half of all mortgage holders (48%) plan to lock in their renewals for five-year terms.