Many Canadians considering borrowing against their home to fund retirement

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Published May 18, 2021 at 2:06 am

retirement

Many Canadians believe the value of their home should be part of their retirement plan.

A recent Ipsos survey—commissioned by HomeEquity Bank—found that 45 per cent of Canadians over the age of 55 believe accessing the equity in their homes should be part of their retiring plans.

According to the findings, 79 per cent of respondents believe just Registered Retirement Savings Plans (RRSPs), the Canada Pension Plan (CPP) and Old Age Security (OAS) won’t provide enough financial security for them to retire comfortably.

Additionally, 40 per cent of older homeowners would rather stay in their current homes and benefit financially by borrowing against the equity instead of trying to downsize or move into an assisted living facility.

“Downsizing isn’t as attractive as it used to be,” Steve Ranson, president and CEO of HomeEquity Bank, said in a news release.

“Given the amount of risk associated with moving and finding another suitable home, more than a quarter of older homeowners are considering accessing the equity in their homes instead of selling to help fund their retirements,” he continued.

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