Wealthy Canadians’ primary residences are currently worth upwards of $1.5 million, on average, according to a new study by BMO Private Banking.
And, nearly all of those surveyed (95%) own their residences, versus renting. Out of those who own homes, adds the survey, 58% say they’ve paid off their mortgages, while the rest have between $95,000 and $250,000 to pay back (see table below).
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Additional properties
The study finds more than one third (36%) of wealthy Canadians own second properties—of that group, 40% own two or more houses. The average value of these properties is $708,539.
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The top reasons for owning an additional property include:
- having a home for vacation purposes (47%);
- using the home as an investment (39%);
- using the home as income-generating property (36%);
- having something to pass on to future generations (28%); and
- having a potential retirement home (12%).
Among those who own additional property, 80% own one in Canada, while 27% own in the U.S., 11% own in Europe, and 8% own in Central America, South America or the Caribbean. Aside from that, 7% own in Mexico or Asia, and 5% own in Australia.
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When buying abroad, “having the financing already in place puts more control into the hands of the buyer,” suggests Craig Downey, vice-president and managing director of Platinum Banking at BMO Private Banking. “[Clients] can avoid being subject to [foreign] financing conditions.”
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Regional survey breakdown
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Region | Average value of primary residence | % who have paid off mortgage | % who have mortgage | Average value of mortgage debt | % who own a second property | Average value of second property | % top reason for having a second property for vacation purposes |
National | $1,489,400 | 58 | 15 | $176,000 | 36 | $708,500 | 47 |
Quebec | $678,600 | 47 | 20 | $95,800 | 39 | $477,100 | 50 |
Ontario | $1,787,900 | 56 | 15 | $231,500 | 27 | $1,170,200 | 40 |
Alberta | $719,500 | 70 | 14 | $199,200 | 44 | $642,600 | 33 |
B.C. | $3,908,200 | 67 | 13 | $236,100 | 44 | $634,100 | 67 |
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