A Golden In­vest­ment for Your Golden Years


IF YOU’RE LIKE MANY OTHER mid­dle-aged and older Cana­di­ans, you may have won­dered whether you have enough money saved or in­vested for your golden years. Ac­cord­ing to a sur­vey com­mis­sioned by the On­tario Se­cu­ri­ties Com­mis­sion, more than 40 per­cent of work­ing Cana­di­ans over 50 are wor­ried they’ll run out of funds af­ter they’re re­tired. Some men and women are post­pon­ing re­tire­ment, re­ports Statis­tics Canada, be­cause they’re con­cerned they’re not fi­nan­cially pre­pared for it.

The good news is that you may be more pre­pared than you re­al­ize. If you par­tially or com­pletely own your home, then you have al­ready made a valu­able in­vest­ment that’s lit­er­ally right un­der your nose! Over the years, as you’ve been build­ing eq­uity in your home, you’ve also been em­pow­er­ing your fu­ture.

A re­verse mort­gage is a loan that al­lows Cana­dian home­own­ers 55-plus to use the eq­uity in their home with­out giv­ing up own­er­ship. For many peo­ple, a re­verse mort­gage pro­vides them with the free­dom to en­joy the re­tire­ment life­style they’ve al­ways dreamed of. The loan can be used for what­ever you wish, whether it’s to ren­o­vate your home to make it eas­ier to stay in, pay off higher-in­ter­est debt or mi­grate south ev­ery win­ter. For some, it’s a way to fi­nally jump­start the re­tire­ment that keeps get­ting put off.

Re­verse mort­gages are in­creas­ingly a vi­able and at­trac­tive first choice for many Cana­di­ans

You aren’t re­quired to pay in­come tax on the funds you re­ceive from a re­verse mort­gage, and there is no im­pact on your old-age ben­e­fits. There are also no manda­tory monthly mort­gage pay­ments. And as long as you keep your home in good con­di­tion and pay for house in­sur­ance and your prop­erty taxes, you’re never at risk of los­ing own­er­ship of the home that has meant so much to you. You can live there as long as you like – which, as we know, is what many 55-plus home­own­ers hope to do!

In fact, more Cana­di­ans than ever are con­sid­er­ing re­verse mort­gages as an in­te­gral part of their re­tire­ment plans. HomEquity Bank, which has been re­li­ably pro­vid­ing the CHIP Re­verse Mort­gage to Cana­di­ans for over 30 years, has ob­served this trend first­hand. The bank re­ported record 32.5 per cent year-over-year growth in 2017. It also fielded twice the customer in­quiries com­pared to the year be­fore. Th­ese are in­di­ca­tors that re­verse mort­gages, far from be­ing a last re­sort, are in­creas­ingly a vi­able and at­trac­tive first choice for many Cana­di­ans.

HomEquity Bank is a fed­er­ally reg­u­lated, sched­ule 1 Cana­dian bank. Un­like other banks, it’s one-hun­dred-per­cent fo­cused on and com­mit­ted to serv­ing home­own­ers 55-plus, no mat­ter what Cana­dian province they live in. You’ve worked hard to own your home. Find out how you can use this in­vest­ment in your re­tire­ment fi­nan­cial plan­ning.

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