(NC)–As the decline in the real estate market continues to plague communities across the country, Canada?s senior population is being forced to deal with the sobering realities of depreciating home values. A recent Angus Reid survey revealed that 44 per cent of Canadians over 60 are worried about a decrease in their home?s value.
A slowing economy and tighter credit access has led to a rather grim outlook for the retirement plans of thousands of Canadians. In fact, 37 per cent of Canadians over 60, who are not retired, have had to postpone their retirement plans as a result of the current economic situation, according to Angus Reid.
But what does this mean for the increasing number of Canadians who rely on reverse mortgages as a form of additional income in their retirement years?
Since reverse mortgages are a long term financial solution that enables seniors to access home equity as a lump sum to invest or supplement fluctuations have little effect on the day-to-day access to cash. So taking out a reverse mortgage now may be a good way to tap into home equity without selling in a down market.
In fact, at a time when real estate has fared much better than other investments, stocks in particular, it can sometimes be an opportune time to rearrange your asset mix. Leveraging the equity in a home can provide seniors with the opportunity to take advantage of the current cost of stocks and build a stronger investment portfolio. Designed exclusively for homeowners aged 60 and older, CHIP provides seniors with a stable financial solution for the long-term and enables them to access up to 40 per cent of their home?s value, with no income, credit or medical requirements.
More information on this topic is available online at www.chip.ca, or call 1-866-522-2447.
– News Canada