CHIP Reverse Mortgage: Featured Posts

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Reverse Mortgage

Elder couple looking at laptop
Reverse Mortgage

Notice of security interest scams (or NOSI scams for short) have been costing Canadians tens of thousands of dollars, and these NOSI scam artists often target retirees. Originally, it was meant to protect providers of in-home appliances, such as heaters and air con units, from customers who fell behind on payments. A notice of security interest is similar to a lien in that it’s registered against the title of the property. NOSI scam artists use a notice of security interest to force their victims to pay outrageous sums of money for their HVAC, air con or other fixture. NOSI scammers typically target people whom they feel they can easily confuse and trick into signing documents they don’t understand, usually for products they don’t need.

Continue reading 13 min read
Elder couple shaking hands with advisor
Reverse Mortgage

As Canada’s population ages, more and more retirees are seeking ways to maintain their standard of living while staying in their homes. According to an Ipsos survey commissioned by HomeEquity Bank, over 93% of Canadians desire to “age in place”. This growing trend, coupled with the country’s rising property prices, has led to a surge in the popularity of reverse mortgages. For many Canadian retirees, a reverse mortgage can provide a valuable source of supplemental income, allowing them to maintain their standard of living while remaining in their homes. With flexible repayment options and no monthly payments required, reverse mortgages offer a practical solution to the financial challenges of retirement.

Reverse Mortgage

In this article, we explain what a LIRA is and how it works. A LIRA is a registered account designed to hold pension assets contributed by you and your former employers. LIRA withdrawal rules vary according to the province where you reside. Most provinces allow you to withdraw up to 50% of your LIRA when you reach 55 and then transfer those funds to a Registered Retirement Savings Plan (RRSP). You can withdraw from a LIRA as soon as you transfer your assets into your chosen income stream option – so a short time after you turn 55, in most provinces. Although LIRA unlocking rules vary by province, there are a number of exceptions that allow you to access your locked-in funds.

Older lady looking at paper and calculator
Reverse Mortgage

A Registered Retirement Savings Plan (RRSP) is a very popular way for Canadians to save for their retirement with some attractive tax breaks that help their savings and investments grow faster. RRSPs provide a considerable tax break whenever you make a contribution; every dollar you contribute reduces your taxable income by a dollar, so it could lead to a significant tax refund at the end of the year. Any amount you pay into an RRSP that is above that limit is considered an RRSP over contribution. The CRA treats RRSP over contributions seriously and you could end up having to pay a penalty, so it’s important to know how to calculate your RRSP over contribution and also how to fix an over contribution to an RRSP.

Continue reading 10 min read
Elderly-couple-infront-of-their-home-scaled
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.

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
Turn your home equity into tax-free cash.
No monthly payments!

Retirement Planning

Elder couple talking to advisor
Retirement Planning

Many Canadians dream of an ideal retirement, living out their older years with leisure, travel, and quality time with loved ones. The unsettling reality is that this lifestyle will be out of reach for a significant amount of retirees due to the widening retirement gap – the gap between what people have saved and what they’ll need for a comfortable retirement. The retirement gap, as mentioned, is a problem where near-retirees and retirees aren’t expected to have enough income in retirement. Retirement in Canada is becoming increasingly difficult for many older adults when we put things into the perspective of how complex, costly, and seemingly limited the available support is. Some are going as far as describing the potential income gap, a possible retirement crisis.

Elder couple laughing with doctor outside
Retirement Planning

In a time of economic uncertainty and changing demographics, preparing for retirement is a top concern for people of all ages. A 2023 Fidelity Retirement Report addresses these concerns and offers strategies to relieve the stress of this important life transition. The Fidelity report reveals that 64% of pre-retirees are hesitant to retire due to these financial pressures, with 58% expressing concerns about not having saved enough. Navigating the complexities of retirement planning can be overwhelming, but seeking guidance from a financial advisor can make a significant difference. A key takeaway from the report is the transformative power of having a comprehensive financial plan. Developing a financial plan can be complex, but working with a financial advisor can simplify the process.

Daughter helping elder mother with hanging a painting
Retirement Planning

The landscape of retirement planning in Canada is evolving, demanding a more dynamic approach than ever before. Traditional strategies that were once relied upon are now challenged by several factors reshaping the retirement landscape. Firstly, Canadians are enjoying longer life expectancies, with retirement potentially stretching over two to three decades. Economic factors also complicate matters, with rising inflation rates and real estate markets becoming increasingly volatile, and affecting retirement strategies such as downsizing. In this dynamic environment, retirement planning is essential to ensure financial security and meet the evolving needs and aspirations of Canadian retirees.

Lifestyle

Senior couple talking to advisor
Lifestyle

Every day scammers think of new ways to defraud Canadians out of their hard-earned savings and retirement fund through deceitful and hard to spot scams. It’s hard to quantify the amount that is lost specifically to fraud against the elderly, but in total the Canadian Anti-Fraud Center says that $554 million was lost to fraud in Canada last year.
So, why are there so many financial scams targeting the elderly? The people who carry out elder financial scams believe that they’re an easier target than younger people. While older people can be more trusting and less tech savvy, scammers specifically focus on targeting individuals with cognitive issues that may be more easily confused.

Continue reading 10 min read
group-of-older-people-laughing-outside-together
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.

older-woman-considers-her-retirement-finances
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.

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Ambassadors

Pattie Lovett-Reid

Small changes can lead to significant results. When something feels out of place physically or financially, it may be time to bring in the experts. Trust me, I have been there. I am a certified financial planner, yet we have a financial advisor who manages our money. Getting started can be overwhelming, and procrastination can be the one thing in both arenas that can derail you. If you are embarking on a new physical or financial journey, here are a few steps to help you.

Father hugging his daughter in home
Joyce Wayne

Talking to aging parents can be delicate and downright tricky. What do our children say to us when we need guidance or support? It’s a complicated line to cross. The shoe has always been on the other foot. Moms and dads are supposed to help and advise their kids, not the other way around. Yet, often unexpectedly, children need to support their parents or guide them through making big and small decisions. Now, a new book by Laura Tamblyn Watts, the CEO of CanAge, Canada’s national seniors’ advocacy organization, provides a guide to conversation-starting scripts, along with expert advice, to help us navigate these tricky and often urgent situations.

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