Mortgage debt among seniors is increasing right across Canada, and for those aged 70+ it has increased 12% compared to 2013.
That’s according to the results of a Debt in Retirement study conducted by HomEquity Bank and Equifax Canada.
The study was conducted in July, 2015 and focused 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 struggling with debt. It can be due to inadequate 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.
Here, below, are the key findings of the Debt in Retirement Study:
“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 exclusively with seniors, helps 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.
For more information on CHIP Reverse Mortgages contact us for a no obligation consultation.