While retiring is something that many Canadians look forward to, the celebrations can be cut short if they have a substantial amount of debt to deal with in their twilight years. For instance, many Canadians may worry about retiring with a mortgage. In fact, a recent Equifax study found that Canadians over the age of 65 have accrued debt at a much faster rate when compared to other Canadian demographics.
As such, many Canadians may need to turn to innovative commercial and residential mortgage solutions in order to deal with their rising debts. Here, we will focus primarily on the things you will need to consider when retiring with a mortgage in Ontario.
Focus on Paying Off Your Debts
Many middle-aged people will focus on helping their children pay off their student loans or car payments, or will prioritize the growth of their investment portfolios, while they slowly but surely pay off their home loan. As a result, many adults will enter their senior years with a large amount of investments, but very few to no liquid assets, such as cash.
However, if the aforementioned scenario applies to you, then you can help ease your financial burdens by speaking to a licensed financial security advisor. They will help you prioritize debt repayments by making your money work more effectively for you, so that you will be able to pay off your mortgage quicker during your retirement years.
Open an All-in-One Account
Many Canadians opt to separate their investments, savings, and their mortgage across a myriad of different financial institutions and accounts. However, by dichotomizing your finances across multiple different accounts or institutions, you may be unable to get a strong grasp of your financial well-being.
The good news is you can gain greater clarity of your financial health, and also prioritize debt repayments more efficiently, by opening an all-in-one account. For instance, an all-in-one account may incorporate all of your chequing, savings, emergency funds, line of credit, and mortgage into one account. In fact, an added benefit of consolidating all of your finances is that you can pay off your mortgage faster, as you can avoid certain banking fees, and also lower your interest payments.
Northwood Mortgage™
If you are retiring with a mortgage, and need some help in paying off your mortgage faster so can retire in peace and comfort, then we can help. Northwood Mortgage is one of the largest brokerage firms in the Greater Toronto Area, and has over 50 years of experience in residential, commercial, and industrial mortgage solutions.
Furthermore, all of our agents and managers are proud members of the Canadian Association of Accredited Mortgage Professionals, and we are also a proud member of the Independent Mortgage Brokers Association. To learn more about our mortgage products and services, please visit our website or give us a call at 888-492-3690 for a free, no obligation quote and consultation for peace of mind.
