CHIP Reverse Mortgage: Featured Posts

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Reverse Mortgage

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Reverse Mortgage

Reverse mortgages in Canada continue to grow in popularity, and there are a wide range of reasons why. Retirees who have no private pension or retirement savings can struggle to have a comfortable retirement with only the Canada Pension Plan and Old Age Security for income. Others want to stay in their home as they age but need to renovate it to make it more accessible, as their mobility becomes restricted. And some retirees want to have a more enjoyable retirement than their current retirement income allows. Many Canadian retirees are sitting on a huge asset — their home — and have little income or other assets. A reverse mortgage can be the ideal way to cash in some of their home’s equity to boost their retirement income.

Continue Reading 7 min read
How do you Pay Back a Reverse Mortgage
Reverse Mortgage

If you move out or sell your home, paying back a reverse mortgage will be your responsibility. If you die, the responsibility for paying back a reverse mortgage will be your heirs’ or your estate’s. Many people wonder, do you have to pay back your parents’ reverse mortgage if they die? If they are the mortgage holders and they left their home to you in their will, then you would have to pay off the reverse mortgage, because it can’t be transferred to another person. Another big advantage of a reverse mortgage is that, on the whole, the timing for a reverse mortgage pay back is up to you. You get to choose the best time for paying back a reverse mortgage, unless one of three things happens:
The last surviving mortgage holder dies, or you move out of your home, or you sell your home.

Continue Reading 10 min read
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Reverse Mortgage

A reverse mortgage can be a good idea for Canadians 55+ who own their own home and are looking to meet their cash flow needs during retirement. A reverse mortgage can supplement government pensions and retirement savings and is often used to cover unplanned medical expenses, home renovations, living expenses, or to consolidate debt and reduce debt payments.

Continue Reading 10 min read
mature-couple-looking-at-each-other-and-smiling-talking-about-interest-rates
Reverse Mortgage

Similar to conventional mortgage rates, reverse mortgages are offered with fixed or variable rate terms and are impacted by the actions of the Bank of Canada (BoC). Since the BoC raised its overnight interest rate for the third time this year, to 1.50%, on June 1, mortgage rates are no doubt on the minds of many homeowners. This is also true for Canadians with a reverse mortgage or those considering one.

Continue Reading 8 min read
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Reverse Mortgage

Detective Constable Kristin Thomas, has been with the Toronto Police Services for 23 years. She is an experienced fraud investigator working in the Financial Crimes Unit, Corporate Crimes Section. According to Constable Thomas, the fraudsters’ scams play to the victims’ loneliness –and with one thing leading to another, they develop into romance. To avoid falling into the elaborate traps set by these predators, Thomas suggests being extra careful about what you post online or how you word your profile. Most victims never even meet their predator face to face. If you think you are being scammed, Thomas suggests getting support from friends, family, or your doctor. it’s essential to look for the signs of fraud that Constable Thomas describes and learn how to quickly recognize these signs and reach out for help.

Continue Reading 5 min read
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Reverse Mortgage

A mortgage refinance can be a useful financial tool, allowing homeowners to cash in some of the equity in their home and/or secure a considerably lower mortgage interest rate. Refinance mortgage calculators in Canada are really helpful when planning for this process. There are costs involved when refinancing a mortgage, so when you need to know if it’s worth it to refinance, a mortgage calculator can help, as well as being able to help you plan the best time to refinance your mortgage.

Continue Reading 10 min read
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Retirement Planning

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Retirement Planning

A National Institute of Ageing (NIA)/TELUS Health Survey discovered that 91 per cent of Canadians of all ages, and almost 100 per cent of Canadians 65 years of age and older, plan on supporting themselves to live safely and independently in their own homes as long as possible. Research has found that mobility issues are especially prevalent for older people. Installing stairlifts and home elevators are now quite common. We can now order groceries or meal packages to be delivered, join in social activities at a community centre or library through Facebook or a Zoom call and visit a physician remotely. But to effectively prepare to age in place takes time, money and energy and ideally should be done before it’s needed.

Continue Reading 7 min read
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Retirement Planning

A Group Retirement Savings Plan (GRSP) is a collection of individual Registered Retirement Savings Plan (RRSP) accounts that an employer sponsors for its employees. It is typically administered by a plan provider, such as an investment or insurance company. Employers provide GRSPs to help employees save for retirement and take advantage of better management fees. Employers who sponsor the GRSP also have the option of contributing to individual employee plans. The main difference between a GRSP and an RRSP is that a Group plan is administered by an employer on behalf of employees, while an RRSP is solely the responsibility of the individual plan holder.

Continue Reading 8 min read
elderly Asian couple looking at their LIF policy in ipad
Retirement Planning

A Life Income Fund (LIF) is one way to convert your pension to income. In this article, we explain what a LIF is and how it works. We also discuss LIF withdrawal rules and other ways to supplement your retirement income, such as a reverse mortgage. A LIF is a registered account designed to provide you with an income throughout your life using funds from your locked-in pension. If you decide to convert your pension to a LIF, you’ll also have to choose the investments to hold in your LIF, which something that your financial advisor can help you with. You’ll also have to decide on the amounts you’ll need to withdraw each year from your LIF, based on government withdrawal rates

Continue Reading 8 min read

Lifestyle

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Lifestyle

In the beginning, retirement is fun and feels pretty good for everyone. But, at some point, some retirees (not the comfort-oriented ones) will start to rebel against too much relaxation. You can sleep in or travel to all those places you dreamed about, but you know you can’t stay in vacation mode forever. It’s estimated that approximately one in three people will experience retirement shock soon after retiring, which are the same odds of a person getting shingles. The happiest retirees are the most prepared. They know what their strongest needs are and find activities that will satisfy them on a regular basis. They do not suffer from retirement shock, because they are excited by and focused on what they plan to do.

Continue Reading 4 min read
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Lifestyle

Michael Stein, author of “The Prosperous Retirement” came up with a concept of a three-phase retirement the phases being – The Go-Go years, the Slow Go Years, and the No-Go years. In their “go-go” years retirees are in good health and eager to catch up and do all of the things they didn’t have time to do when they were working. Eventually depending on the state of their health retirees will hit their “slow-go” years. They become less energetic and more sedentary which results in less spending. At some point people will enter their “no-go” years and they will experience a further slowdown in activity levels. You need to be prepared for a possible rise in medical costs and how much they will rise is anybody’s guess.

Continue Reading 4 min read
Susan Williams 60 Before 60
Lifestyle

Prior to the pandemic, I always was active outside the house doing different things or busy organizing events so my behaviour now was noticeably different from my pre-pandemic life. I needed to find some way to re-engage with the outside world and push some of my boundaries. This is when I came up with the idea of doing 60 different things before I turned 60 years old. I wanted to integrate activities and experiences that I could possibly do on a regular basis after the year was over. Through each of my experiences, I also tried to glean some type of life lesson. If my experience has taught me anything over the past year, if something is important to you, make it a priority and do it.

Continue Reading 10 min read
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Ambassadors

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Pattie Lovett-Reid

For the fourth consecutive rate announcement, the Bank of Canada did exactly what we expected it to do and left the bank rate unchanged at 5%. Inflation is tamer and has decelerated but has not yet hit the desired 2% target. The job market has proven more resilient than anyone initially thought. Yet, the private sector has been scaling back on hiring for the past three months. We don’t know with certainty if our economy is headed toward a soft landing or a mild recession. A far more sensible approach is to set yourself up for success and control what you can in an environment where you feel you have no control. Explore all of your funding options to free up some cash.

Continue Reading 4 min read
A-Black-older-couple-outside-their-home
Joyce Wayne

Only about one in three older Canadians are confident they’ll be able to retire when they hope to. In a new report published by the National Institute on Ageing (NIA) entitled “Growing Older in Canada” This research is based on the information received from 5,975 Canadians in 2023. So, which is it? Are older Canadians doing “’pretty well’” or are many struggling. After reading the report, I’m unconvinced that the outlook for retirees is particularly rosy. The majority of older Canadians wish to retire, but close to 40 percent are not sure they have the financial resources to do so. When I retired from teaching ten years ago, I never expected expenses to rise so quickly. Among today’s retirees, there remains a high percentage of home ownership.

Continue Reading 6 min read
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