Q: My wife and I are both 60 and working full time with combined annual income of $130,000. We both are rebuilding our credit due to bankruptcies from divorces. Would we be better to save our money in RRSPs or purchase a home with 5% down? We are looking at a home in Langford area of Victoria for 673,000 with a 2 bdrm suite rented for 1300/mth. We are thinking of buying and renting out the main part of the house as well for 2000/mth and holding for 5 to 10 years.

A: Buying your personal residence is a great investment because any gains in value are tax free and you can use money that would otherwise go towards rent to pay your mortgage. Buying a $673,000 house with 5% down means you will have a large mortgage. Make sure you are prepared for higher interest rates.