Learn About Reverse Mortgages
The following is information pertaining to HomEquity Bank’s CHIP Reverse Mortgage product.
KEEP YOUR HOME
CHIP Reverse Mortgage
The following is information pertaining to HomEquity Bank’s CHIP Reverse Mortgage product:
†Additional legal costs may apply if additional legal work is required (eg. title issues).
The Difference Between Home Equity Loans and Reverse Mortgages
Regardless of rising home prices in Canada, many Canadians still do not automatically think of drawing from their home equity during tough financial times. In certain parts of Canada, downsizing is beginning to be a lot harder than before, especially if you want to continue living in particular neighbourhoods. Aging Canadians enjoy the comfort of staying in their own homes, but with the cost of living and the cost of maintaining the home (via renovations or retrofitting to age in place), it is getting a lot harder for them to sustain and maintain their lifestyle.
A home equity loan is becoming a more prevalent product and almost a necessary tool for many aging Canadians. In fact, some Canadian retires even incorporate home equity loans into their retirement planning, so as to enable them to live a financially independent retirement. For some people, gone are the days when savings for retirement would actually be sufficient. In a 2013 survey conducted for the Investor Education Fund by the Brondesbury Group, 1,500 Canadians over the age of 50 were interviewed online. Half of the households surveyed felt that they would deplete their retirement savings within the first decade of retirement. For years, Canadians have been underestimating the amount they would need to save for retirement. Increasing life expectancy has a lot to do with this.
Healthcare advancements have been a major contributor as to why, in Canada, for the first time, the number of seniors aged 65 and older exceeded the number of children aged 0 to 14. The aging Canadian demographic is seeing its longest life expectancy ever and the need for financial assistance geared towards this growing demographic have never been more prevalent than it is today.