Canadians been told time and time again that, at the very least, their goal should be to retire debt-free. Many are struggling to pay off their debts, and for those who do, there’s the allure of the reverse mortgage.
It’s time that Canadians realized that “safe as houses” only applies to the houses you own, not the one you rent from a lender.
A home equity line of credit can be an important source of emergency funding, and many Canadians have opted for its flexibility and lower interest rate. But many are not entirely sure of what they have signed up for, according to a survey out today.
Over 600,000 Canadians will struggle to make their mortgage payments if their rates rise by just 1%, according to the seventh Annual State of the Residential Mortgage Market report by the Canadian Association of Accredited Mortgage Professionals (CAAMP).
The need for an improved cash flow in retirement is leading to record number of reverse mortgages in Canada, according to a HomEquity Bank study.
A record number of reverse mortgages in Canada has sparked concern, with some in the financial industry expressing fears of homelessness. However, the more pragmatic in the industry are quick to offer reassurance that it’s not all gloom and doom.
Retired Canadians aren’t budging. According to an Ipsos Reid survey conducted for HomEquity Bank (provider of CHIP Home Income Plan), 61% of retired Canadians intend to stay in their current home as long as possible after retirement.
While Canadians are more confident about their ability to save for their retirement, pessimism has grown dramatically, according to a report by the BMO Retirement Institute.
The love of houses, whether they be single family dwellings, townhouses, condominium apartments or anything in between, has been pretty strong in recent months. Interest rates are low, house prices have been rising and some people, still turned off by the market volatility of the past couple of years, are viewing a home purchase as an alternative to investing in financial assets such as stocks or bonds.
A recent report from Statistics Canada says home equity makes an important contribution to retirement income. However, retirement planners say it is not necessarily a sign of financial wellbeing.