Retiring With a Reverse Mortgage
Homeownership is a crucial factor in financial planning – and as homeowners age, a reverse mortgage can become a key factor in retirement planning.
Statistics Canada recently released a study, “Homeownership over the Life of Canadians“, showing that homeownership rises quickly to age 40, climbing at a slower rate thereafter before reaching its peak at age 65. Significantly, however, the StatsCan study shows that the homeownership rate changes little from age 65 – the ‘traditional’ age of retirement – to age 74 when seniors start to move out of homeownership.
These findings are not surprising. StatsCan highlights how homeownership leads to the accumulation of wealth over an individual’s life course, resulting in real estate assets “which are particularly critical to families with children, and can be liquidated later in life for retirement income or other needs”.
A reverse mortgage can be an ideal vehicle for tapping into the accumulated wealth that has accumulated in one’s home, particularly between ages 65 and 74 when seniors enjoy their most active retirement. The income stream from a reverse mortgage can help finance one’s retirement while allowing homeowners to remain in their home. With a reverse mortgage, seniors can enjoy the benefits and comforts of continued homeownership, while allowing them to tap into the financial egg nest they have built for an active retirement.
