How to help your clients age in place for a happier and healthier retirement

With life expectancy increasing, statistics show the average Canadian will run out of savings 10-12 years before their expected lifetime, meaning more retirees are now seeing a shortfall in their retirement funds.

According to HomeEquity Bank’s SVP, Customer Experience & Chief Marketing Officer Vivianne Gauci, retirees have three main fears – outliving their funds, losing financial control, and having their independence limited by declining health. This leaves an excellent opportunity for brokers to educate their clients, discuss the benefits of a reverse mortgage, and help them comfortably age in place.

When savings dry up, many Canadians look towards the equity in their home – but with 93% preferring to ‘age in place’*, the idea of selling and moving out can create a lot of stress.

There is a common misconception that a reverse mortgage is a ‘last resort’ solution. However, many Canadians are starting to recognize reverse mortgages as a smart, savvy, and strategic retirement solution. With the CHIP Reverse Mortgage by HomeEquity Bank, your client can access the equity they’ve built in their home to fund their retirement needs, allowing them to maintain home ownership and stay in the home they love.

Ageing in place: the benefits and reality

The benefits of aging in place are endless, from an increased quality of life to reducing stress, maintaining independence, and allowing continued engagement with family, friends, and the community your clients love.

Remaining at home also allows retirees to postpone a move to a retirement home – a difficult decision for many – and instead access at-home care from dedicated caregivers.

While living out retirement at home is the dream, many Canadians are ill-prepared to age in place based on conventional financial thinking. For those aged 65 and up, out-of-pocket healthcare costs have become the biggest expense. Health issues become more frequent around age 77, and according to the Fraser Institute, 75% have made no provision for long-term care costs in their retirement plan.

The need for home repairs or improvements can also put significant stress on retirement savings. The CHIP Reverse Mortgage by HomeEquity Bank provides a financial solution that allows your clients to remain in their homes while providing the finances to afford these upgrades.

Using the CHIP Reverse Mortgage to access home equity

The CHIP Reverse Mortgage allows Canadians 55+ to access up to 55% of their home’s equity, requiring no monthly mortgage payments. One common misconception your clients may have around reverse mortgages is that they will lose ownership of their home to the bank – however, just like with a conventional mortgage, your home is used to secure the loan, which means that HomeEquity Bank is registered as a standard charge on title.

Read more: Is getting a reverse mortgage in Canada a good idea?

With the CHIP Reverse Mortgage, your clients can use the funds however they wish, such as covering health and wellness expenses, property upkeep via renovations, retrofitting, and at-home care.

Another benefit of the CHIP Reverse Mortgage is that it is tax-free. While savings, RRSP, employer pensions and CPP/OAS are all taxable forms of income, the CHIP Reverse Mortgage won’t trigger any capital gains taxes.

For more information on the CHIP Reverse Mortgage and how it can help your clients age in place, watch our CHIP for Health webinar.

To learn more about how to help your clients ease the pressure on their finances and stay in the comfort of the home they love during their retirement, reach out to a HomeEquity Bank BDM today.

_{*Ipsos on behalf of HomeEquity Bank. April 12-16, 2022.}