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Have you ever viewed a reverse mortgage commercial and wondered whether it would help you maintain and enhance your retirement lifestyle?​

One of my clients certainly did. They knew they didn’t have quite enough money and they didn’t want to scale back their lifestyle, work more or sell their home. As a result of seeing the commercial, we ended up modelling a few comparisons:

  • Continue living in their home using a reverse mortgage versus selling their home at a future date and renting an apartment;
  • Providing a blend of taxable and non-taxable income using a reverse mortgage versus all taxable income from a registered retirement income fund (RRIF);
  • Delaying Canada Pension Plan (CPP) benefits until age 70 using a reverse mortgage versus using a RRIF to bridge the income gap between age 65 to 70;
  • And, paying off a mortgage with a reverse mortgage versus keeping the mortgage.