The best investment: your RRSP or your home?

The best investment: your RRSP or your home?

A decision that means taking many different factors into account.

September 4th, 2025

Whether you’re just getting ready to buy your first home or are already a homeowner, there’s always a question in the air: is it a good investment? More specifically, is it a good idea to think of your home as your “pension fund”? Or would it make more sense to contribute to an RRSP invested in the stock market? The answer depends on many factors.

Here’s an overview of the main points to consider.

 

Four criteria to consider when deciding between your RRSP and your house
2) Leverage
In a negative scenario, your losses would be amplified
3) Crunching the numbers
The ROI is just part of the story
To determine how to use your property and your RRSP to increase your wealth over time, talk to your advisor.

The following sources were used to prepare this article:

Buttonwood Property Management, “How to Leverage Debt in Real Estate? [Benefits & Risks].”

Coldwell Banker, “Canadian Real Estate Vs. Stocks: Historical Performance (1990-2024).”

Between the lines, “Real Estate Prices Can’t Go Down!” 

Finance-o-mètre, “Payer sa maison rapidement ou économiser?”

Investopedia, “How to Increase Your Real Estate Net Worth With Leveraging.”

Journal de Montréal, “Finir de payer sa maison pour la retraite ou investir dans son REER?”

La Presse, “Bâtir son REER ou épargner dans l'immobilier?”; “REER ou maison?” 

Long-Term Perspectives (RBC), “Stocks vs Real Estate.”