Mortgaging health costs

One of the most under-estimated expenses for retirees in Canada is healthcare.

A recent health index released by Sun Life indicated that over 44 per cent of Canadians didn’t expect to pay anything for medications in their later years and thought that their prescriptions would be covered by their provincial health care.

The 2013 Sun Life Canada Health Index found that 20 per cent of Canadians have neither health insurance nor money saved to cover future healthcare expenses.

When faced with high healthcare bills and no money specifically put aside to cover them, many have been forced to drain their retirement savings or run up their credit cards or sell their homes.

Many are unaware that without private coverage you can expect to pay around $5,000 a year out of pocket in health care expenses and have no idea about the costs of long-term care within their province.

Total health spending was forecast to reach $6,839 per Canadian in 2018, over $200 more per person than in 2017 ($6,630) and this amount is expected to increase over time.

The sad reality is that many seniors are being driven to food banks because they can’t afford health care costs.

Many are not aware that a reverse mortgage might be a good solution because it allows homeowners to access tax-free cash from the house they’ve paid into, without having to make regular mortgage payments.

A recent Ipsos poll found that 93 per cent of Canadians want to stay in their home during retirement. Many are on a fixed retirement income, which can make it difficult without extra financial help especially if you are burdened by high healthcare costs.

More Canadians are turning to a reverse mortgage.

A reverse mortgage can act as a solution to help with these additional and unexpected expenses. As the money is tax-free, it does not affect government benefits such as OAS or GIS.

A reverse mortgage can be a great way to access the equity in your home to pay for medical expenses or to retrofit your home for your aging needs.

Funds from a reverse mortgage can be used to:

  • Cover out-of-pocket prescription costs that are not covered by your provincial medical plan
  • Purchase mobility aides – walkers, scooters, canes, etc.
  • Retrofit your home for safety – ramps, grab-bars and other safety devices
  • Arrange in-home care such as nursing services, cleaning services or meal preparation

Here’s what we know:

  • Many have not planned for the increased health costs that area associated with aging.
  • 93 per cent of Canadians over 65 want to continue living in their current homes through retirement
  • 69 per cent want to maintain their independence by staying in their home
  • 94 per cent of our clients recommend a Reverse Mortgage

If you would like to learn more about how a reverse mortgage might assist you please give me a call at
1-888-561-2679 or visit www.reversemortgage-experts.ca for more information.

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About the Author

April Dunn is the owner and a Mortgage Broker with The Red Door Mortgage Group – Mortgage Architects. She has been assisting clients to purchase, refinance or renew their mortgages for over 20 years.

April has experience as a Credit Union manager, a Residential Mortgage Manager with a large financial institution and as a licensed Mortgage Broker. By specializing in Strategic Mortgage Planning she has the tools available to build a customized mortgage plan, with the features and options that meet your needs.

April provides a full range of residential and commercial mortgage financing options for clients all over the province of British Columbia and across Canada through the Mortgage Architects network.

Contact e-mail address: [email protected] or by phone at: 888-561-2679.

Website:  www.reddoormortgage.com

The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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