The writer is a BC mortgage broker who focuses on BC mortgage and real estate issues in his writing.
The shift in individual’s portfolios brings forward the large possible market for reverse mortgages in Canada.
The question before federal and provincial regulators is how they are going to fund the building contractors, extended care nurses and other factors associated with the aged.
Where is the large cohort of the boomers going to live if they cannot stay in their homes. Combined with the potential impact of extended lives the stress on the public system will be enormous. In a nutshell the bigger picture dilemma is multifaceted – a large number of seniors, the cost of retirement homes, and the manpower to maintain this population over time.
Canada cannot afford the costs associated with the impact of this large group. The ironic fact is that most seniors would prefer to live in their own home. Very few options remain for seniors to stay within their homes for the remainder of their life times. A reverse mortgage can assist with the financing of this wish and quite necessary option to retain the dignity of seniors in their own living space.
For seniors who own their own home and have sufficient equity, a reverse mortgage provides a way to fund their health needs in their senior years.