HomEquity Bank teams with Equifax Canada to study Debt in Retirement
Mortgage debt amongst seniors is increasing right across Canada, and for those aged 70 and older, it has increased 12 percent in comparison to 2013. That is based on the final results of a debt in retirement research study carried out by HomEquity Bank and Equifax Canada.
The research was carried out in July of 2015 and concentrated on Canadians aged 55 and older. It analyzed the main categories of debt including: mortgages, lines of credit, bank loans, car loans, credit cards and retail cards. The study provided a comparison period of 2013 and 2015.
“At HomEquity Bank, we’re not surprised to see the results of this study. Every day, we hear from seniors who are having difficulties with debt. It can be due to insufficient pensions, the high cost of living or costly health care issues, but debt is increasingly a concern for many seniors,” states Yvonne Ziomecki, SVP, HomEquity Bank.
Conclusions of the study:
Mortgage debt is growing fastest in the Greater Toronto Area and Quebec and less so in Alberta and British Columbia
In 2015, 16.5% of people aged 55 and older are holding a mortgage. This is an increase of 10% from 2013
The average mortgage balance for Canadians aged 55+ grew by 11% from $158,000 in 2013 to $176,000 in 2015
The average mortgage balance is highest in the 55 to 60 age group, at $189,000, and lowest for the 75+ age group at $134,000
Seniors aged 71 and older with a mortgage have an average balance of $140,000
Overall debt for those 70+ has increased by 12% between 2013 and 2015 versus only a 4% increase for those under 70.
“It’s shocking to find Canadians 71+ are still carrying hefty mortgages,” notes Laurie Campbell, CEO, Credit Canada Debt Solutions. “By this age, they are fully retired and there’s no opportunity to increase their income.”
In fact, the study is showcasing a more relaxed attitude towards debt, she adds, “and this can jeopardize retirement.”
The best case scenario is to “have your financial cards in good order in your early 50s and mortgage free by retirement,” Campbell explains.
HomEquity Bank, the only Canadian bank working specifically with seniors, helping elderly people remain in their homes through its CHIP reverse mortgage solution. Seniors can supplement their income via reverse mortgage monthly or lump sum payments or a combination of both. HomEquity bank also mortgages new home purchases allowing people to purchase a more expensive home without mortgage payments.
For more information on reverse mortgage products, and how they work, contact Michael Curry at 705-717-5598 or 647-559-5049 or use the contact form HERE.
About HomEquity Bank
HomEquity Bank is a Schedule 1 Canadian Bank offering the CHIP reverse mortgage solution. It was founded 28 years ago as an annuity based solution addressing the financial needs of Canadians who want to access the equity of their top asset – their home.
Equifax empowers businesses and consumers with information they can trust www.equifax.ca. A global leader in information solutions, Equifax leverages one of the largest sources of consumer and commercial data, along with advanced analytics and proprietary technology, to create customized insights that enrich both the performance of businesses and the lives of consumers.
SOURCE HomEquity Bank