In the past 10-years, surveys have overwhelmingly shown that senior Canadians want to age in place:
- Over 80% of seniors wants to live at their current home; and
- Approximately 91% want to stay in the same community during their retirement years.
In fact, according to a 2016 Census, seniors are less likely to move than the general population. In 2016, 13% of the general population moved, while only 5.5% of seniors between the ages of 65-75 moved. For those that were 75 or older, the percentage reduced to 4.7%. The primary reasons given for by Seniors for wanting to stay in the same community:
- Familiar with the surroundings;
- Remain close to doctors, amenities, communities, friends, and family; and
- Live independent for as long as possible.
There may be financial constraints when seniors consider staying in their current home. They may need to retrofit their home for safety and pay for services to maintain their residence. There are various financial solutions available to assist with aging in place. These includes mortgages, lines of credit, and for seniors that are age 55 and older, there is a reverse mortgage.
For those that are not familiar with a reverse mortgage, it is merely a loan secured against your property from seniors. The big difference between a reverse mortgage versus a standard mortgage or secure line of credit is that there is no repayment until the homeowner sells their house or passes away. “An important feature of the reverse mortgage is that the amount that you owe will never exceed the value of the house,” stated Ming Wong, COO for pololoans, “If house values fall, the lender will take that loss”.
The reverse mortgage will be especially helpful for seniors that are spending more that 30% of their income on housing. It will also provide them with funds that they may need and perhaps even pay off some of their debts. “We have also helped seniors unlock the value of their property to purchase an investment property. This has provided an additional monthly income to assist them with their monthly cash flow,” says Joe Digiambattista, EVP for pololoans.
Free Equifax Consumer Report:
Equifax has introduced free consumer credit reports online, for the first time in Canada, to empower consumers with knowledge about their credit and the steps they can take to protect it. Once you register, the report will be available for a 30-day period. There is no score on this report. It would be particularly useful for clients that are deferring their mortgage payment. The report will show how the mortgage payment is recorded on Equifax Consumer Report. Please click to get access to your credit report.