The rich are getting richer according to the World Wealth Report, a study co-authored by RBC Wealth Management and Capgemini. The number of Canadians with investable assets of $1 million or more grew by 6.5% to a record of 298,000 Canadians. Even more shocking is that the really rich, the number of Canadians with investable assets of $30 million or more, grew by 11% to a record 4,500 Canadians.
Now don’t get me wrong, being rich is a good thing. I do take issue however, with a government agenda that restricts the masses from accumulating wealth, while opening the door for the already rich to make even more money.
The Department of Finance’s myopic focus on reducing national debt is preventing lower income Canadians from owning real estate while rolling out the red carpet for the rich. Today’s mortgage rules have substantially increased the monthly payments associated with home ownership, keeping first time buyers on the sidelines and preventing would be investors from accessing equity in their homes. The rich on the other hand have no trouble snapping up real estate at cheap mortgage rates and becoming landlords to the growing army of rejected first time buyers.
Getting rich and growing richer is a good thing, but only if we all have access to the same opportunities. Tighter mortgage rules have created an uneven playing field where only the rich get richer.