Retirement is a Time to Celebrate Life

After years of hard work, you’ve finally reached a milestone in your life. Retirement’s a celebration of challenges you’ve faced, lessons you’ve learnt and everything you’ve earned – it’s a celebration of life!

It’s also a time of reflection. This is the best time to reflect on your life’s capabilities and limitations – a major part of which concerns your finances. In fact, 68% of Canadians are preparing for retirement in terms of savings. Who doesn’t want to retire comfortably, right?

It’s a huge relief to be able to decide where to spend your golden years. That’s why many still consider buying a home during retirement.

Some retirees may have a lot in their savings as compared to the average Canadian. However, they’re one of the most hesitant in applying for a mortgage because of their financial circumstances. Worry not, because with just a click of a button, you can instantly consult an expert.

3 Major Things You Need to Consider

If you’re considering buying a home during retirement, think of these key factors to give you an idea of what to expect.

1. Your Income and Expenses

Securing Your Monthly Income

It’s common knowledge that income is a major determining factor in qualifying for a mortgage. It’s easy to see why retirees are intimidated with the idea of even applying for one without having fixed income. Take note, however, that there are a few ways to apply for a mortgage using your investments, for example, your retirement savings.

Sources of income that may be used are your pension income, such as your Canada Pension Plan (CPP), retirement income (RRIF) and Old Age Security (OAS). 

Preparing Your Down Payment

The down payment for your home will be a major factor to consider. You may consider using your savings from your Registered Retirement Savings Plan (RRSP) or other investments, such as stocks and bonds. Better yet, consult with a reliable financial security advisor to help you with your plans.

Housing Expenses

Never underestimate the costs of owning a home including

2. Your Debt

Pay Off Your Debt First

Generally, Canadian retirees have less debt. However, recent studies show that the majority of retired Canadians hold some form of debt. This may be from loans, credit cards or spousal and child support.

3. Location and Living Conditions

As you search for a retirement home, one important thing you need to consider is the lifestyle you’d like to maintain.

Now that you’re a retiree, your health should be a priority. Consider the amenities in your desired neighbourhood. Make sure that your health facilities cater to your medical needs and whether the community has a good public health program.  

Also, research places that have a low-cost of living, without sacrificing your basic needs. Places like Peterborough and Windsor in Ontario are popular choices among seniors because of the rich culture and affordable living these cities offer.

If You Want to be Secured, Talk to an Expert

After dedicating years of hard work, it’s finally time to reward yourself! This means living your golden years according to your own terms, without burdening others. The only way to do this is by securing your finances.

Buying a home during retirement can be tremendously intimidating. The stress of finding a home, worrying about home loans, getting the best mortgage rates and of course, securing your years’ worth of hard work can overwhelm anyone. However, if you know the process, you can plan each step of the way and maximize your financial options.

Seek professional advice to help you prepare and ease the home buying process. Daisy Raouph’s a trusted mortgage broker and financial security advisor who’s ready to assist you with your unique mortgage needs. 

Daisy specializes in providing mortgage financing solutions, reverse mortgages, refinancing, renewals and other solutions that involve home buying.

Get started with Daisy Raouph today