Making your investment work for you

You deserve it!

I recently helped my Aunt Fran sell her home of 17 years and move into a seniors housing facility. She was very happy to make the move. No more cooking! That was her biggest desire, a bright living space, having people around and things to do were other deciding factors into her move decision.

But, not everyone is like Aunt Fran! Some of us want to remain in our homes, forever. With the world the way it is today having the comfort of home is important, wherever you find it.

You’ve worked hard to make your home what it is today. Scrimped along the way, but always made your house payments. Home cooked meals over eating out at restaurants, tenting trips versus a family trip to Disneyland. Managing the house and related expenses always came first. “Let’s build more equity”  she said, we can do it ourselves. Remember your first do it yourself project? The blood sweat and tears, not to mention the memories, oh the memories. It’s easy to understand why you would not want to leave.

Aging in place, what does it look like?

If you don’t want to move then lets figure out a way to make things work where you are.

Aging in place means keeping up with the current household expenses, food, property insurance, freshening up the place, adding the covered garden swing onto the patio, unexpected medical expenses, modifications and other items that come up along the way. These things all add up quickly and then we find ourselves prioritizing our list and often we compromise ourselves, just to keep going.

No need to pass on the shower grab bars that would help your welcomed bath be a little more relaxing. You should have an access ramp and the walker or scooter that has been recommended. Oh and not to mention the ignore button she thinks you are continually pushing, the hearing aid that was recommended last year may relieve a little stress in your home.

If you are active in your community and have some great social support to keep you feeling young, why not make things a little easier and start living the way you deserve. There is no reason to give up your privacy, space or independence. Keep your family and friends close and continue to support your local shops and services. Home ownership is something to be proud of and enjoying it to it’s fullest is a possibility.

You worked so hard for your home, now it’s time it worked for you!

Do you want to live retirement on your terms.? If you’re like most Canadian homeowners 55+, much of what you own fits into two categories – the equity in your home and the money you have saved. It is likely that the value of your home has grown over the years and makes up a large portion of your net worth. And while it is positive that your home’s value has increased, this value may not be accessible unless you decide to sell.

A reverse mortgage may be a solution that will work to your advantage, now.

Reverse mortgage loans are a special form of loan, only available to older Canadians 55 years of age and over, allowing people to access the equity of their home without selling. Essentially, a reverse mortgage is a home equity loan with the interest and principal deferred so long as you occupy the premises. When you move out or pass away, the loan plus interest comes due. This makes a reverse mortgage an excellent source of funds if you’re planning to stay in your current home indefinitely, and aren’t worried about passing the home on free and clear to an heir.

A reverse mortgage gives you access to your hard earned equity. Depending on your age and location, you may qualify for up to 55% of the appraised value of your home. This equity can be used for whatever you choose, YOUR decision. A couple of ideas might be:

• • Pay for home improvements or repairs
  • Cover your regular expenses
  • Pay for travel
  • Pay for healthcare expenses
  • Pay-off existing debts
  • Help your children/grandchildren with an early inheritance

Now, just because you may qualify for up to 55% (based on age, location and the value of your home) does not mean you must withdraw all of this equity. The minimum you could access is $25,000 which might just put you in a very comfortable position. You can receive the funds in a lump sum or as monthly installments to supplement your CPP and OAS. If down the road you decided more funds are required, no worries as you have access up to the original 55% of the value of your property.

As a reverse mortgage is considered tax-free income, it will not affect healthcare or pension benefits. Because of this, a reverse mortgage is a terrific way to supplement post retirement income when your pension and Retirement Savings Plan (RSP) may not be enough to cover your expenses. Your home remains YOUR home, always. As you only have access to up to 55% of the value of your home, you will never owe more than your home is worth.