Building Futures Network

The average tuition fees of undergraduate university students have increased since the early 1990s. On average, undergraduate students paid $4,347 in tuition for the 2006/2007 school year, up from $4,211 the previous year. This amount is almost three times the average of $1,464 in 1990/1991. (Source: Statistics Canada. Education, training and learning.)

Seven out of 10 jobs today require more than a high school education. (Source: CanLearn. Why Save for a Post-Secondary Education?)


In 1982, the personal savings rate in Canada was 20.2%. Since then it has plummeted, and by 2005 had reached 1.2%. (Source: Statistics Canada. “Personal debt.” In Perspectives on Labour and Income, January 2007.)


Assume you have a $300,000 mortgage with an interest rate of 7% amortized over 25 years. The follow table shows what happens if you make biweekly mortgage payments instead of monthly payments. It also shows how shortening your amortization to 15 years from 25 years reduces the total interest paid. There are lots of mortgage calculators on the Internet that you can use to see the effects of different options, such as reducing the size of your mortgage by making a larger down payment. Most financial institutions include a mortgage calculator on their web sites. (Source: RBC Royal Bank Mortgage Payment Calculator)   
Payment Frequency



Total Interest Cost

Savings vs. Monthly Payment

 25.0 years
 24.8 years
 15.0 years
 14.9 years