For Canadians 55 and over, a reverse mortgage may be the best solution for funding your hobbies in retirement. With easy qualifiers and no monthly repayment burden, you can enjoy tax-free cash in hand to pursue the activities that enrich the quality of your life. The loan becomes due only when you decide to move or sell your home. In fact, with a reverse mortgage, there is no title transfer; you retain full ownership and continue to stay in the comfort of the home.
Why are hobbies important in retirement?
At any age, hobbies are a valuable part of life. However, they can become especially important when you reach your retirement years.
Not only are hobbies for Canadians 55+ at home an enjoyable escape from the regular routine, but they also offer a wide range of mental and physical health benefits. They can help you develop a new skill, connect with other like-minded individuals and encourage your mind and body to relax, all of which are important for our overall well-being. Therefore, as you age, spending time engaged in a hobby is an excellent way to live out your golden years.
When you retire, it’s time to start pursuing those passions you may not have had time for in your working years. While these pursuits can significantly improve your quality of life, some can also get expensive. Read on to learn more about how your hobbies can make money and how to fund your hobbies. Consider why a reverse mortgage may be the best solution for you during retirement.
Can your hobbies give you additional income?
If you’re ready to start your new hobby, there are a few ways you can generate additional income from it even in retirement. This way, you can enjoy your leisure activities while also enjoying part-time work. Fortunately, if you are creative enough, many hobbies for the elderly can be turned into a profit. However, how much you earn may depend on how much time you are willing to invest in marketing your products or services. The following is a list of some popular hobbies that can make you money in retirement.
- Sales: Are you an avid collector of valuables or antiques? If so, you may want to consider selling these items online on sites like eBay, Kijiji, or Amazon. If you bake or have pottery or woodworking skills, you may find success selling your items on Etsy.com or through your own online store. You may also want to sell your handmade items or baked goods at a flea market or local farmers market if you prefer to operate offline.
- Writing: If you have a way with words, one of the most creative hobbies for money is to take up writing. Check out your local paper or search the internet for websites that are offering freelance writing work. If you are more interested in pursuing poetry or fiction writing, these areas are generally less lucrative but do offer some ability to earn you money if you are committed to submitting your work to interested publishers.
- Event Planning: If you love hosting parties, you may want to consider a hobby in event planning. Keep it small by setting up a basic website and start charging for your advice and services.
- Organizing: If you enjoy organizing your home, try offering your services to others. Before you commit, make sure you are able to physically handle lifting heavier items or clearing out a person’s closet. You may consider starting your own business or lend your assistance to an organizer who already has a thriving business.
- Consulting: If you worked in one industry for your entire career, it’s likely you have the skills and knowledge that could greatly benefit others. If this is the case, you may want to consider taking up a hobby in consulting. Promote your insights on a blog or use a social channel such as LinkedIn where recruiters are often scouting for seasoned veterans to help their teams.
How to fund hobbies in retirement?
The key to funding your hobbies in retirement is to make sure you are spending your time doing something you truly love. This way, the hours that you are putting into a hobby that makes money feels less like work and more like play. Here are some options that are available for you to fund your hobbies.
- Make a Plan: While it’s fun to be spontaneous every once in a while, making a plan will help if you want to engage in hobbies for money. If you’ve recently taken up a new skill but haven’t quite perfected it, planning out your projected growth for the year will also help you map out how to pace yourself and how much money you can invest into the hobby you take up in retirement.
- Set-Up a Savings Account: Hobbies are a personal investment. If you have a savings account, you may consider using some of the money to fund your hobby and by default, invest in yourself. After all, hobbies for the elderly will significantly improve both mental and physical well-being.
- Choose a Lucrative Hobby: Hobbies for Canadians 55+ don’t always have to be limited to the standard list of activities. Find a way to make money directly from your hobby in order to fund the hobby you are participating in. Consider selling things or teaching others about your hobby.
- Create a Website: If you want to sell your products and services, try learning how to run your own website. Setting up your website can help you learn even more about the hobby you are interested in and will allow you to tap into your creative side. The more visitors you attract to your site, the more likely you are to get some paid advertising out of it that you can put back into the hobby itself.
Are you concerned about how to fund your hobbies in retirement? If yes, then reverse mortgage may be the best solution for you.
Advantages of a reverse mortgage to fund your hobbies post-retirement
A reverse mortgage at the start of your retirement can be the best solution to help you pursue your hobbies and live out your dreams post retirement. No longer a last resort, reverse mortgages have become a popular tool with the potential to significantly improve your retirement outcome. Read on to learn more about the advantages of using a reverse mortgage to fund your pursuits.
- Reverse mortgage payments are tax-free income, so income-tested benefits such as GIS or OAS are not affected.
- A reverse mortgage loan does not have to be paid back until you sell your home or until the last homeowner passes on. They can also be paid back at any time.
- No burden of monthly payments for interest or principal, which means a reverse mortgage is beneficial even if you have a tight budget.
- Because of the no negative equity guarantee1,2, the amount you owe back will never exceed the fair market value of your property.
- You have the flexibility to receive the overall approved loan amount as a lump sum pay out, regular instalments or a combination.
At HomeEquity Bank, we offer a safe and reliable solution for Canadian homeowners age 55+ to access home equity and transform it into instant tax-free cash without the need to owe monthly mortgage payments. Additionally, you can avoid paying any principal or interest payments until you or your spouse leave the home when you get a reverse mortgage. Whether you want to receive your money at once or over a longer period of time, we leave the choice to you. As a Canadian homeowner aged 55+, using a reverse mortgage to fund your hobbies may be right for you. Whether you are enjoying your hobbies at home or turning your hobby into an extra source of income, we are here to help you make your goals possible.
Getting the CHIP Reverse Mortgage® is a quick and easy process! Read how the CHIP Reverse Mortgage works and use the reverse mortgage calculator to find out how it can give you the extra cash to fund your hobbies post-retirement. Call us at 1-866-522-2447 today.
1 Must maintain property, pay property taxes and homeowners’ insurance, and abide by your mortgage obligations.
2 The guarantee excludes administrative expenses and interest that has accumulated after the due date.