More Baby Boomers Want to Stay in Their Homes; but Can They Afford It?

If there was ever a generation that wanted to stay in their homes as long as possible, and not ever have to think about moving in with their children or going to one of those dreaded “retirement communities,” it’s today’s Canadian Baby Boomers. With many Boomers already in retirement, and many more to come, the Baby Boomers are one of the largest generations in history to enter retirement all at the same time. This poses some questions, and the latest one being asked by the HomEquity Bank is where all the Boomers going to go, and are they going to stay in their own homes? To find out, they teamed up with Ipsos Reid, who conducted a survey to get the answers to that question.
The results were clear: among the many Canadians set to retire within the next few years, the majority (61%) want to stay in their homes. It makes sense, as most people ideally would rather stay in their own home than uproot and move on during a time in their life that’s supposed to be the most relaxing and stress-free; but there’s a problem. Even though the majority of Boomers want to stay in their homes, few of them can actually afford to do so. In fact, 48%, nearly half, of all retirees-to-be feel as though they won’t be able to afford it, citing a mortgage as their main source of debt and the one that they won’t be able to pay once they no longer have an income to rely on.
But is it really that big of a problem? Greg Bandler, senior vice-president of HomEquity Bank, doesn’t seem to think so. He claims that even though nearly half of retirees don’t think they can afford to stay in their home, it’s because they haven’t had to yet fully explore their options. And once they do, they’ll find that home equity loans and reverse mortgages are available. These financial options can not only provide homeowners with cash during the short-term, but they also provide a way for people to stay in their own homes – giving Baby Boomers and all retirees, the best of both worlds!