Senior Mortgage Solutions

Consolidate debt and lower monthly expenses

Many seniors carry higher-interest debt from credit cards, lines of credit, car loans, or other obligations. These monthly payments can consume a significant portion of your fixed retirement income, creating stress and limiting your financial flexibility. By accessing your home equity, you can pay off these higher-interest debts and replace multiple monthly payments with one lower payment (or no payment at all) freeing up hundreds or even thousands of dollars each month.

Create tax-efficient retirement income

As you age, Required Minimum Distributions (RMD) from RRSPs (which become RRIFs) can push you into higher tax brackets. This means more of your retirement income goes to taxes, and you may face clawbacks on Old Age Security (OAS) benefits. Accessing your home equity provides tax-free funds. Unlike RRSP/RRIF withdrawals, pension income, or investment earnings, money from your home equity is not considered taxable income.

Make your home more comfortable and accessible

As we age, our homes may need modifications to remain safe and comfortable. These renovations can be expensive—often $20,000 to $100,000 or more—and may not be something you’ve budgeted for. Accessing your home equity allows you to make these improvements without draining your savings or dipping into emergency funds.

Cover unexpected costs

Retirement often brings unexpected expenses. Rather than depleting your savings or emergency fund for these one-time costs, you can access your home equity. This preserves your liquid assets for ongoing expenses and provides a financial cushion for future needs.

Enhance your retirement lifestyle

You’ve worked hard for decades. Retirement should be a time to enjoy life, pursue hobbies, travel, and do the things you’ve always dreamed of. However, living solely on fixed income can make these dreams feel out of reach. Your home equity is part of your retirement nest egg. While it’s wise to be conservative, it’s also important to actually enjoy your retirement. There’s a balance between preserving wealth and experiencing life.

Purchase additional property

Rather than depleting savings or selling investments to purchase additional property, you can use your existing home equity as leverage. This allows you to diversify your assets while maintaining liquidity. Some seniors use their home equity to purchase a smaller condo for winter months in Arizona or Mexico, while renting out their primary home or simply maintaining both properties.

Support your family

Rather than waiting until you pass away for your children to benefit from your estate, you can choose to help them now when they need it most. Your home equity can provide this support without disrupting your own retirement finances. There’s profound satisfaction in seeing your financial help make a real difference in your children’s or grandchildren’s lives. Whether it’s helping them buy their first home, start a business, or avoid financial hardship, your support can be life-changing.