Family and friends may have a variety of suggestions and advice as you draw closer to your golden years. If you are looking for a smart and efficient way to fund your retirement years, a reverse mortgage for seniors is worth considering. It allows you to maintain full ownership and control of your home while transforming up to 55% of your home’s equity into tax-free cash to meet your financial needs.
With Canadians living longer and healthier lives, most seniors do expect to continue living in their homes throughout their retirement. Yet few have the means to support their lifestyle when they retire. HomEquity Bank, the provider of CHIP Reverse Mortgage™, recently conducted a study to determine the financial health and viability of Canadian seniors. The data showed a startling gap between the lifestyle expectations and the reality.
Here are some key findings of the random survey of 1,500 participants conducted between October 5 and 14, 2016.
- 82% felt it was important to be able to stay in their homes throughout their retired life
- Almost 50% of the retirees had outstanding debt with 35% of those aged 75+ still carrying debt and 25% still had a mortgage
- A startling 40% reported savings of less than $100,000
- 25% included the sale of their home as part of their retirement income
As Yvonne Ziomecki, SVP, Marketing & Sales at HomEquity Bank pointed out, “Canadian seniors are among those with record household debt levels and also surprisingly minimal savings.” She stressed the importance of seniors gaining a solid understanding of their financial options, including reverse mortgages, in order to find the right retirement solution.
CHIP Reverse Mortgage for Seniors: Helping You Fulfill Retirement Goals
Many people mistakenly believe that the easiest financial solution, particularly at retirement, is to sell their homes. In a can article on HomEquity being among Canada’s 500 most profitable companies in 2016, President and CEO, Steven Ranson clarified that this is not necessarily true. He pointed out an important fact, “Selling means moving somewhere else and that costs money.”
Although the average Canadian senior’s financial situation may not be very strong, many have a considerable amount of equity tied up in their homes. Reverse mortgages for individuals aged 55+, can unlock this cash reserve giving you income in your lifetime while you continue to live in and own your home. You can decide how you want to receive this money and no payment is necessary until you sell the home.
At The Mortgage Centre, our CHIP specialist, Darlene Vilas can provide details about this reverse mortgage for seniors. She can also help determine your eligibility and indicate how much you are likely to qualify for. We work for you, not the lender!
To find out more about a reverse mortgage for seniors, please call 1-866-597-5626 or contact us online.