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Mortgage Interest Deduction Needed

2 out of 3 Canadians will have trouble financing their retirement according to a Canadian Institute of Actuaries (CIA) report.  People are simply not saving enough.

As a result, the CIA recommends making interest on principle home mortgages tax deductible.  The government could then encourage people to invest those tax savings for their retirement.  Doing so would likely boost savings rates as well as equity in Canadian homes.

According to the CIA this makes sense because, “for a significant portion of Canadians, the adequacy of their retirement income will be dependent on the value of their home’s equity.”

Read the full report here.

 

Side Note:  The Canadian Capitalist questions two of the reports assumptions.  Here’s his view.