Richards Mortgage Group Articles

Renovating a home can breathe new life into a space, increase its value, and enhance overall comfort. However, financing such projects can be a daunting task for many homeowners. In Canada, various options exist to help individuals achieve their home renovation goals without undue financial strain. Here’s a breakdown of the available financing methods:

Client is 55, single, and behind on retirement savings. A case-study in pre-retirement mortgage planning. I have a client - let's call him Ted - who recently reached out to me to do some mortgage planning.

Last updated November 9, 2022 Essential Mortgage Planning Tips BEFORE you Retire/Quit Your Regular Job As you approach retirement, before relocating or downsizing, or otherwise before losing your regular predictable employment income, you may want to consider to position yourself to retain access to your home equity and be aware of your future lending options - it's smart retirement planning in my opinion. Once you lose your regular employment income, your lending options are drastically reduced and your home equity may become trapped forcing you to sell or change your plans if there is an acute need for money. I always say, the best time to apply for credit is when you don't need it! Please enjoy the video (click the image) and the supplementary discussion below.

Using the Equity in Your Home to Purchase Other Properties What do Bob & Kathy of Calgary and John & Betty from Ottawa both have in common? They both happened to contact my office this past week and they both were trying to figure out mortgage options to finance the purchase of a vacant parcel of land somewhere 3 or 4 hours west of their home cities. For now, the plan was to use the place as a weekend and summer getaway and God knows they could use a getaway in this crazy Covid-ridden world! Down the road, each couple will eventually build a retirement home or cottage.

A reverse mortgage is a viable money strategy that allows some retirees to age-in-place, deferring the need to move to an expensive seniors living complex. As a senior, is your home equity really the sacred cow you have grown up to believe or can it be a tool to allow you to age-in-place, with dignity and in the comfort of your own home? Besides falling, the number one fear for many seniors is not having enough money to pay their day-to-day living expenses as they grow older. For those who still own homes, likely 90% of your net worth is the equity in your house while investments, RRSPs and TFSAs will make up the last 1/10th. The fear is real - only 30% of seniors have some sort of pension plan to fall back on, and CPP/OAS pays only about $1200/mo.

I live in a neighborhood built in the early 90s. Last year we replaced the roof at just under $10 grand, and this year we are looking at replacing our 25-year-old furnace at about $5 grand. Thankfully, our windows, kitchen, bathrooms, and basement had already been recently renovated by the previous owner because those are even more expensive undertakings!