Canadian’s won’t be retiring their mortgage debt anytime soon, according to a recent survey by the Bank of Montreal. Data shows that more than half (51%) of Canadian homeowners plan to carry their mortgage into their retirement. But there’s more to this figure than meets the eye, says Phil Soper, chief executive of Royal LePage Real Estate Services. Soper argues that changing demographics and approaches to money management are what’s causing this increase, rather than just increased consumer debt. Continue reading
Tag Archives: advice for seniors
Reverse Mortgages on the Rise
Aging Canadian’s in need of a financial boost are cashing in record numbers, according to data released earlier this month. A report released by the parent company of HomEquity Bank, the nation’s sole provider of reverse mortgages, states that a record number of reverse mortgages (with a rough total worth of $67.2 million) were closed in the fourth quater of 2011.
Reserve mortgages are becoming increasingly popular among the nation’s elderly, especially those who have failed to save enough to fund a comfortable retirement. Reverse mortgages allow seniors to borrow up to 50% of the appraised value of their home; principal repayment (along with interest) is not collected until the home is sold.
Is a reverse mortgage right for you? It could be, especially if you’re house-rich but cash-poor. The following is a full analysis of the pros, cons and alternatives to Canada’s newest mortgage craze. Continue reading