For many people, the only way to afford a home is to finance it with a mortgage and pay off that loan over time.
In March 2025, the national average home price was $678,331 according to the Canadian Real Estate Association.
Given that the median the median after-tax income of Canadians was $74,200 in 2023, it’s easy to see why the typical working Canadian can barely afford a down payment on a home today, let alone the entire cost in one fell swoop.
But uber-wealthy folks are in a different position. Those with billions of dollars to their name can buy a home outright rather than take out a loan.
Yet celebrities like Mark Zuckerberg, Elon Musk and Jay-Z have all made headlines for taking out multimillion-dollar mortgages — not out of necessity but to reap a couple of key benefits.
It allows for better cash flow
Someone with billions to their name might not worry about cash flow, but taking out a mortgage can be a strategic move to maintain liquidity and keep cash available for other investments, rather than tying it up in a relatively illiquid asset like real estate.
Take Hollywood power couple Jay-Z and Beyoncé, for example. Despite their estimated combined net worth of US$1.6 billion in 2017, they secured a US$52.8 million mortgage to purchase an US$88 million hillside estate in Los Angeles, according to the L.A. Times.
There could be major benefits for Beyoncé and Jay-Z, depending on how their portfolio is allocated,” Robert Cohan, managing director at Carlyle Financial, told Business Insider. “A mortgage gives them financial flexibility, and they have the ability to pay it off whenever they choose.
You can still land an affordable mortgage rate even if you don’t fall in the category of the elite 1%. The key is to not accept the first offer on the table — and to shop around and get quotes from at least two-three lenders.
According to a study conducted by LendingTree, 45% of homebuyers who received more than one mortgage rate quote got a lower rate when they shopped around.
That’s why using Nesto could be a smart choice. Nesto is Canada’s first fully digital mortgage broker, designed to help you find the best mortgage rates quickly and easily.
No matter where you are in the country, Nesto lets you instantly compare low rates on a wide range of options — from 3-year fixed to 5-year variable mortgages.
They also have the longest rate hold period in the country for new mortgages at 150 days, so once you’re pre-approved you have plenty of time to consider your decision before committing.
Free up more money to invest
Someone who’s a billionaire a couple or several times over may not have to worry so much about cash flow. But borrowing for a home allows them to hang onto their cash for other purposes.
Remember, unlike stocks, which can be bought and sold in an instant, homes are a highly illiquid investment. So rather than tying up hundreds of thousands of dollars or more in a home, the wealthy might instead keep their money readily available and simply make payments they can easily afford on a loan.
If you’ve been locked in at a higher fixed rate for the last few years, you might be able to get a lower rate when it’s time to renew your mortgage.
While it may be convenient to automatically renew with your current lender, it often pays to shop around for the best deal.
With Nesto, you can forgo calling up various mortgage lenders and instead simply answer a few questions about yourself and your home, and Nesto will let you compare various offers.
Once you secure a lower rate, make sure you’re investing the extra money that would have gone into your mortgage payment.
More ways to invest in real estate
Purchasing additional properties for rental or investment income can be a hassle. Beyond ongoing maintenance and property taxes, there’s also the added burden of managing tenants and the responsibilities that come with being a landlord.
This is where CIBC Investor’s Edge comes in.
CIBC Investor’s Edge is a self-directed online trading platform where you can buy and sell Real Estate Investment Trusts (REITs) on the stock market. REITs own and operate a range of real estate properties, including office buildings, apartments, hospitals and malls. Investors earn returns through dividends and potential price appreciation of the portfolio of properties — but you aren’t forced to deposit large sums as a down payment or be responsible for fixing leaky faucets.
With CIBC Investor’s Edge you’ll pay low commissions on trades and have no or minimal account maintenance charges, depending on the size of your portfolio.
Get 100 free online equity trades when you open a CIBC Investor’s Edge account using promo code EDGE100†. Offer ends September 30, 2025.
Sources
1. Canadian Real Estate Association: Canadian Homes Sales Drop as CREA Downgrades 2025 Forecast
2. Statistics Canada: Canadian Income Survey, 2023
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
