More Canadians than ever are in agreement that owning a home is a good investment, according to a survey from Royal Bank.

According to the survey, a record 90% of Canadians, the highest level since 1998, say buying a home is a good investment. As well, 17% of homeowners say their homes will be their primary source of retirement income.

“There’s a definite consensus among Canadians when it comes to the financial benefits of owning a home,” said Catherine Adams, RBC Royal Bank’s vp, home equity financing, in a release. “In fact, the average homeowner estimates that his or her home has gone up 18% in value over the last two years.”

This year’s survey reveals 72% of all Canadians expect housing prices to rise over the next year. However, homeowners may be underestimating the true value of their properties.

According to the survey, Canadian homeowners estimate the average market value of their homes at $214,337, which is somewhat less than the national average of $258,274 reported by the Canadian Real Estate Association in January 2006.

RBC also notes 60% of Canadian homeowners currently hold a mortgage; up 4% from 2005 and 10 points greater than 2000. The average amount owing is $95,840.

As well, 32% of those age 55+ say they hold a mortgage. This supports a recent RBC study that showed that nearly half (48%) of Canadians do not believe it’s necessary to retire debt free.

When it comes time for renewal, half the mortgage holders will likely go with a fixed rate mortgage, 25% say they will select a variable rate, and another 25% plan to go with a combination of both. Almost half of all mortgage holders (48%) plan to lock in their renewals for five- year terms.