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Historically, Canada has allowed leverage on home-buying through policies that enable low down payment mortgages, which has stimulated home value growth over decades. For example, Canadian buyers have been able to purchase homes worth up to $900,000 with just a 7.5% down payment. The ensuing appreciation of these homes, some now valued at around $3.8 to $4 million, emphasizes the potential wealth accumulation through real estate.
In this scenario, after 25 years of investment, even if the stock portfolio reached significant numbers, the eventual home equity gained through appreciation outstripped it, reinforcing the idea that owning a home provides a long-term wealth advantage.