BMO Retirement Institute: Canadians Should Make it a Priority to Retire Debt Free
- Debt is the number one barrier preventing Canadians from saving for retirement - Almost half of Canadians aged 50 to 59 currently have mortgage debt - Debt in retirement can be a threat to financial security - Shorter amortization is an excellent option to become mortgage-free sooner
(firmenpresse) - TORONTO, ONTARIO -- (Marketwire) -- 03/13/12 -- According to the BMO Retirement Institute, a significant number of Canadians approaching retirement carry mortgage debt - a serious issue given the realities of life after people leave the workforce.
According to Statistics Canada:
"Failing to pay off your mortgage before retirement means you could be carrying significant debt into retirement, which could be a threat to your financial security," said Tina Di Vito, Head, BMO Retirement Institute. "Many retirees have fixed incomes and could find it very difficult to meet their mortgage obligations, especially in the event of sudden increases in interest rates or unexpected expenses."
"Options are available to homeowners who want to be mortgage-free sooner, including choosing a shorter amortization," said Laura Parsons, Mortgage Expert, BMO Bank of Montreal. "A shorter amortization will significantly reduce the amount of interest paid over the life of the mortgage and, perhaps more importantly, the amount of time you carry that mortgage debt."
Ms. Parsons noted that, on a $400,000 mortgage at a 5 per cent interest rate, moving from a 30-year to a 25-year amortization can save upwards of $70,000 in interest over the life of the mortgage, which Canadians can put directly towards their retirement savings.
Other key findings on retirement, mortgages and debt from the BMO Retirement Institute:(i)
(i)The survey was completed on-line from February 21 to 23, 2012, using Leger Marketing's online panel, LegerWeb. A sample of 1500 Canadians, 18+, were surveyed. A probability sample of the same size would yield a margin of error of +/-2.5%, 19 times out of 20.
Contacts:
Media Contacts:
Matthew Duffin, Toronto
416-867-3996
Sarah Bensadoun, Montreal
514-877-8224
Laurie Grant, Vancouver
604-665-7596
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Unternehmensinformation / Kurzprofil:
Datum: 13.03.2012 - 14:18 Uhr
Sprache: Deutsch
News-ID 124300
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contact information:
Town:
TORONTO, ONTARIO
Kategorie:
Commercial & Investment Banking
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