Real Lessons for Canadians55+ looking housing choices as they move into retirement. Retirement should bring peace—not financial panic. But with shrinking pensions, rising living costs, and unexpected expenses, many seniors are forced to make hard decisions. Should I Downsize or Get a Reverse Mortgage, is a question that most seniors ask themselves as they consider their retirement housing options in Canada Reverse Mortgages The biggest advantage of this option is that you get to stay in your current home, with the hassel and cost of moving ( Realty fees, Land transfer, Legal, Moving expenses ). It provides you tax-free retirement income with flexible payment options with no monthly payment required. Downsizing This options gives you access to the equity in you current home after moving expenses without borrowing cost. You will most likely lower you property taxes and utilities as well but moving expenses can be high initial cost to this option and you may have to adjust your lifestyle to accomodate the small living space. If you decide to downsize into a Condo or townhouse be sure to take into account your strata fees as an on going expense. Summary If you value staying in your home, like the independence, and having a solid stream of income, a reverse mortgage may be the best fit. However, if you’re comfortable moving, looking to simplify your lifestyle, and want to avoid the interest charges and cost of moving, downsizing might be the better choice. This a complex decision and discussing this with your financial advisor and Mortgage broker like myselft can give you the insights to make the best decision for your financial situation. Please contact me at 250-299-3886 or book a consultation online.

The amount you are eligible to receive depends on the age of the youngest applicant, the value of your home, and the type and location of your property.*

No, there are no mortgage payments required until you choose to move, or sell your home. You do have the option to make advance interest payments to help reduce the amount owing at the end of your reverse mortgage.*

You will remain the owner of your home. We will never ask you to move or sell, provided you: pay your property taxes and home insurance, and keep your property well-maintained.

A home equity line of credit is a good option for some people. It requires you to make regular payments. Before getting one, you will also have to qualify based on your income and credit history. You may also have to requalify as time goes on.

We will first pay off your existing mortgage, along with any other secured debt, and then give you the remaining proceeds.

Yes! In our 30 years of experience, over 99% of homeowners have money left over when their Reverse Mortgage is repaid. And on average, the amount left over is more than 50% of the value of the home. This is due to the conservative limit (up to 55%*) we put on the amount that is made available to you; and the fact that most homes continue to increase in value.

Downsizing is certainly an option but expenses can really add up with renovations, commissions, legal fees and land transfer taxes. Often you have to move away from the neighborhood you love in order to purchase a home that will leave you with some extra cash for retirement.

No, CHIP will not affect any government benefits you may receive, such as Old Age Security (OAS), Canada Pension Plan (CPP), or Guaranteed Income Supplement (GIS).