It's absolutely less risky for a number of reasons: 1. If I default on my credit card debt it will screw up my credit but the banks can't come after any of my

It's absolutely less risky for a number of reasons: 1. If I default on my credit card debt it will screw up my credit but the banks can't come after any of my assets. If you default on a mortgage it will screw up your credit and the bank will take your home. 2. I am free to take on the level of risk that I'm comfortable with, including risk free options such as treasuries or CDs. With a mortgage you are locked in. 3. I am free to mitigate my risk by diversifying across asset classes. I can put some money in gold, some in real estate, some in Japanese equities, etc... With a mortgage you are leveraging a huge chunk of money and concentrating it in a single undiversified holding. If a disaster strikes and the insurance company doesn't cover it your wealth is wiped out. If property values decline and you need to move you're wiped out. By every measure owning a home is riskier.