Managing Debt in Retirement: A Smart Solution for Homeowners

Reverse Mortgages Mark Goode 4 Feb


Managing debt is a challenge at any stage of life, but it can feel especially overwhelming during retirement when your income is often fixed. Many Canadians seek debt consolidation to streamline their payments and reduce interest rates. However, traditional options like personal loans, refinancing, or home equity lines of credit can be difficult for retirees to access due to the need for a solid credit score and steady income.

The CHIP Reverse Mortgage: A Smart Debt Consolidation Option
For homeowners aged 55 and older, the CHIP Reverse Mortgage from HomeEquity Bank offers a unique and effective way to consolidate debt—without requiring monthly payments. By leveraging your home’s equity, you can pay off high-interest debt and gain greater financial freedom in retirement. Many retirees have found relief through this solution, improving their overall financial well-being.

Why Choose the CHIP Reverse Mortgage?
The CHIP Reverse Mortgage offers several compelling advantages for retirees looking to simplify their finances:

No Monthly Payments: Unlike traditional loans, repayment is only required when you sell your home, move, or pass away.
Simple Qualification: If you and your spouse are 55 or older, the approval process focuses on your home equity, not your credit score or income.
Tax-Free Cash: Access up to 55% of your home’s value, and it won’t affect retirement benefits like OAS or GIS.
Flexibility: Choose to receive the funds as a lump sum or in installments based on your needs.
Protection Against Market Fluctuations: With HomeEquity Bank’s No Negative Equity Guarantee*, you or your heirs will never owe more than the market value of the home when the loan becomes due.

Traditional Debt Consolidation vs. The CHIP Reverse Mortgage
While there are various options for consolidating debt during retirement, each comes with its own challenges:

Refinancing or HELOC: These options require strong credit and income. Missed payments could result in foreclosure.
Unsecured Personal Loans: If your credit is less than perfect, you could face high interest rates.
RRSP Withdrawals: These can trigger withholding taxes, which could impact your retirement savings and income.
Balance Transfer Credit Cards: These may offer 0% interest for a time, but they often require proof of income to qualify and could have monthly minimum payment obligations.

Take Control of Your Retirement Finances
Debt doesn’t have to overshadow your retirement years. With the CHIP Reverse Mortgage, you can consolidate your debt, eliminate monthly payments, and enjoy financial peace of mind—all while staying in your home. If you’re looking for an effective way to manage debt in retirement, this could be the solution you’ve been searching for.

To learn more about how the CHIP Reverse Mortgage can help you take control of your finances and simplify your retirement, reach out to our Mortgage Man DLC team today 705.326.8523. If you are ready to get started on your reverse mortgage you can begin with our convenient online application here.

Source: HomeEquity Bank / OURHOUSE Dominion Lending Centres

Refinancing Your Mortgage in 2025 with Mortgage Man DLC

Mortgage Tips Mark Goode 12 Dec

Refinancing Your Mortgage in 2025

Refinancing your mortgage in 2025 can be a smart financial move, and at Mortgage Man DLC, we’ve seen just how much it can benefit our clients! 🏡

While refinancing is often done at the end of your mortgage term to avoid penalties, the timing really depends on your goals. Whether it’s unlocking equity to fund renovations, consolidating debt, or taking advantage of lower rates, refinancing can offer endless possibilities.

Let’s break down how refinancing could work for you:

🔑 Get a Better Rate: With the Bank of Canada adjusting rates over the past months, now is an excellent time to refinance for better rates and lower monthly payments. Experts predict even more drops in 2025! Check out the list of 2025 rate announcement dates.

🔑 Consolidate Debt: If you have high-interest debt, refinancing could help roll everything into one payment—at a lower interest rate. Simplify your finances and save more in the long run!

🔑 Unlock Home Equity: Need funds for renovations, education, or a large purchase? Refinancing allows you to tap into your home’s equity to achieve your financial goals.

🔑 Change Your Mortgage Product: Refinance to adjust your mortgage terms. Lock in a lower fixed rate, switch to a variable rate, or adjust your payment schedule to suit your financial plans.

✨ Exciting Updates from the Government of Canada:

  • As of November 21, uninsured mortgages no longer require passing the stress test when switching lenders during renewal (as long as no extra funds are added).
  • Starting January 15, default-insured mortgages can refinance up to 90% of their value to fund secondary suites.

Refinancing in 2025 offers so much flexibility and opportunity. Want to know if it’s the right time for you?

Let’s chat about your options!
📞 Contact us today at 705.326.8523.

What to Expect for the 2024 Spring Housing Market

Real Estate Mark Goode 2 Apr

The spring housing market is just around the corner! Whether you’re looking to sell, buy, or want to ensure your mortgage is in order, knowing what to expect can help.

Here is the low down on what we are anticipating for various factors affecting the housing market this season:

  • Interest Rates: While the Bank of Canada held the overnight rate steady at 5% for the past five meetings, it is expected that they will make the first interest rate cut in June or July this year, followed by additional reductions in the overnight rate to a more manageable level as the year continues. Experts are predicting that The Bank of Canada rate could drop to 3.75% by the end of 2024.
  • Housing Prices: With interest rates expected to start coming down mid-year, that means more affordability and buyers in the market. As a result, it is expected that home prices will increase this year.
  • Market Inventory: According to the Canadian Real Estate Association, the number of new properties listed has edged up 1.5% month-over-month in January, with this expected to rise as the interest rates drop.?

Looking to buy? For those of you who may be looking to purchase a home this Spring, here are some things that can help you be prepared:

  • Get your finances ready by paying off as much of your debt as possible to improve your debt-to-income ratio and ensure you qualify for the best rate possible.
  • Obtain a mortgage pre-approval before starting your search. This helps you understand your budget and makes your offer more appealing to sellers.
  • Clearly define your priorities and preferences for a home. This will help streamline your search and make decisions more efficiently, especially as the market becomes more competitive.

First-time homeowner? Take advantage of first-time home buyer assistance if you have not been a homeowner in the past. You can find out more on the Government of Canada website here.

Looking to sell? If you want to sell your home this Spring, you will want to be ready to take advantage of the market! Some things you can do include:

  • The first step is to find a reliable real estate agent who can help you with pricing and listing your home for sale. Not sure who to call? I can provide some references!
  • Allow for open houses during evenings and weekends whenever possible to ensure you’re maximizing potential buyer foot traffic.
  • I have even more tips on decluttering and getting your home ready to sell below!

Want to renew or refinance? If you’re not looking to sell or buy this Spring, you may still be looking for mortgage advice or assistance with your home and finances. Now is a great time to make sure your mortgage is working for YOU! With so many renewals coming up this year, keep in mind there are several benefits to taking time to review your renewal before you sign:

  • Get a Better Rate: With interest rates expected to come down, taking time to reach out to me and shopping the market could help save you money!
  • Consolidate Debt: Renewal is a great time to take a look at your existing debt and determine whether or not you want to consolidate it onto your mortgage. In most cases, the interest rate on your mortgage is less than you would be charged with credit card companies or other forms of financing you may have.
  • Start on that Reno: Do you have projects around the house you’ve been dying to get started on? Renewal time is a great opportunity for you to look at utilizing some of your home equity to help with home renovations so you can finally have that dream kitchen and updated bathroom, or even utilize it to purchase a vacation property!
  • Change Your Mortgage Product: Are you not happy with your existing mortgage product? Perhaps you’re finding that your variable-rate or adjustable-rate mortgages are fluctuating too much and you want to lock in! Alternatively, you may want to switch to a variable as interest rates level out. You can also utilize your renewal time to take advantage of a different payment or amortization schedule to help pay off your mortgage faster!

No matter your plans for this month or the coming season, don’t hesitate to reach out to our team for expert mortgage advice, 705326.8523 or you can apply today here !

Source: Dominion Lending Centres Marketing

Understanding Amortization: Exploring Your Options for Loan Repayment

General Mark Goode 5 Feb

Your mortgage amortization period is the number of years it will take you to pay off your mortgage. Depending on your choice of amortization period, it will affect how quickly you become mortgage-free as well as how much interest you pay over the lifetime of your mortgage (a longer lifetime equals more interest, whereas a shorter lifetime equals less interest but also bigger payments).

Amortization Benchmarks
Let’s start by looking at the mortgage industry benchmark amortization period. This is typically a 25-year period and is the standard that is used by the majority of lenders when it comes to discussing mortgage products. It is also typically the basis for standard mortgage calculators. While this is the standard, it is not the only option when it comes to your mortgage amortization. Mortgage amortizations can be as short as 5 years and as long as 35 years!

Benefits of a Shorter Amortization
Opting for a shorter amortization period will result in paying less interest overall during the life of your mortgage. Choosing this amortization schedule means you will also become mortgage-free faster and have access to your home equity sooner! However, if you choose to pay off your mortgage over a shorter time frame, you will have higher payments per month. If your income is irregular, you are at the maximum end of your monthly budget or this is your first home, you may not benefit from a shorter amortization and having more cash flow tied up in your monthly mortgage payments.

Benefits of a Longer Amortization
When it comes to choosing a longer amortization period, there are still advantages. The first is that you have smaller monthly mortgage payments, which can make home ownership less daunting for first-time buyers as well as free up additional monthly cash flow for other bills or endeavors. A longer amortization also has its advantages when it comes to buying a home as choosing a longer amortization period can often get you into your dream home sooner, due to utilizing standard mortgage payments versus accelerated. In some cases, with your payments happening over a larger period, you may also qualify for a slightly higher value mortgage than a shorter amortization depending on your situation.

Let’s Chat!
Our team of mortgage professionals are happy to help with the decision for the amortization that best suits your unique requirements and ensures you have adequate cash flow. However, it is important to mention that you are not stuck with the amortization schedule you choose at the time you get your mortgage. You can shorten or lengthen your amortization, as well as consider making extra payments on your mortgage (if you set up pre-payment options), at a later date.

Ideally, you are re-evaluating your mortgage at renewal time (every 3, 5, or 10 years depending on your mortgage product). During renewal is a great time to review your amortization and payment schedules or make changes if they are no longer working for you.

If you have any questions or are looking to get started on purchasing a home, don’t hesitate to reach out to us at Mortgage Man DLC today 705.326.8523, mark@markgoode.ca

Second Mortgage – Just the facts.

General Mark Goode 21 Jun

One of the biggest benefits to purchasing your own home is the ability to build equity in your property. This equity can come in handy down the line for refinancing, renovations, or taking out additional loans – such as a second mortgage.

So, what exactly is a second mortgage?

First things first, a second mortgage refers to an additional or secondary loan taken out on a property for which you already have a mortgage. This is not the same as purchasing a second home or property and taking out a separate mortgage for that. A second mortgage is a very different product from a traditional mortgage as you are using your existing home equity to qualify for the loan and put up in case of default. Similar to traditional mortgages, second mortgages also come with their own interest rate, monthly payments, set terms, closing costs and more.

 

What are the differences between second mortgages versus refinancing?

As both refinancing your existing mortgage and taking out a second mortgage can take advantage of existing home equity, it is a good idea to look at the differences between them. Firstly, a refinance is typically only done when you’re at the end of your current mortgage term so as to avoid any penalties with refinancing the mortgage.

The purpose of refinancing is often to take advantage of a lower interest rate, change your mortgage terms or, in some cases, borrow against your home equity.

When you get a second mortgage, you are able to borrow a lump sum against the equity in your current home and can use that money for whatever purpose you see fit. You can even choose to borrow in installments through a credit line and refinance your second mortgage in the future.

Are there advantages of a second mortgage?

There are several advantages when it comes to taking out a second mortgage, including:

  • The ability to access a large loan sum (in some cases, up to 90% of your home equity) which is more than you can typically borrow on other traditional loans.
  • Better interest rate than a credit card as they are a ‘secured’ form of debt.
  • You can use the money however you see fit without any caveats.

What are the disadvantages of a second mortgage?

As always, when it comes to taking out an additional loan, there are a few things to consider:

  • Interest rates tend to be higher on a second mortgage than refinancing your mortgage.
  • Additional financial pressure from carrying a second loan and another set of monthly bills.

Before you jump into any additional loans, second mortgages or even refinancing, speak to one of our knowledgeable Mortgage Man experts. We are here to assist you in making the best solution for your needs.

 

Source: https://dominionlending.ca/products/second-mortgages-what-you-need-to-know-2

Upgrading Your Home? Five Ways To Refresh Your Home This Spring.

General Mark Goode 1 Jun

Are you looking to upgrade your home? With warmer weather and extended sunlight hours, spring is the perfect time to give your home a bit of extra TLC. Here are five renovation projects you can do this spring that can increase your home’s appeal, inside and out:

1. Repave your driveway.

You may have noticed that your driveway is beginning to sink, or the snow, mud, salt and tire runs have taken a toll on its surface over the years. Repaving your driveway won’t be a simple DIY project, but because it’s at the front of your home, it’s worth thinking about giving it a fresh repave or investing in a more ornate design to bring your curb appeal up a level.

2. Landscaping makeover. 

Consider lining your driveway or adding flower beds, shrubs, and trees around the perimeter of your home to not only provide privacy and a beautiful aesthetic and give homes to pollinators and other wildlife. If you want options to help mow the lawn less, consider replacing some grass with bark mulch.

3. Reseal doors and windows. 

Good sealing is crucial for weatherization, making your home less drafty, more comfortable, and energy efficient. During the colder months, your door and window caulking can crack or shrink. Ensuring that there are as few gaps as possible in your door and window sealing can prevent cold or hot air from escaping or entering your home.

4. Outdoor kitchen and seating area.

An outdoor kitchen and seating can be a great home addition to entertain guests during the warm spring and summer months. With an outdoor kitchen, everything you need can be conveniently left outside, such as barbeques, ice makers, and refrigerators, saving time from making trips in and out of the house. Additionally, you can keep lingering cooking odours and messes outside. Adding an outdoor fireplace, comfortable seating, and tables lets your family and friends gather around to relax and create everlasting memories.

5. Retrofit your home.

You may have an emotional attachment to your home and desire to age in place, but you have not planned any renovations that make it easier to move around during your golden years. To boost the accessibility and comfort of your home, you can prepare for a safer washroom by replacing a tub-style shower with a curb-less or walk-in model, or you can plan features that enable single-level living, such as moving your laundry space to the main floor.

Renovating your home can be an exciting project but comes with a price tag. If you’re a homeowner aged 55-plus, the CHIP Reverse Mortgage by HomeEquity Bank is a great option to provide you with the funds you need to refresh your home to enjoy for many years to come. You can unlock up to 55% of your home’s equity in tax-free cash, and you’re free to use your money in any way you like, such as investing in your home.

 

Contact our team at Mortgage Man today to learn more about how the CHIP Reverse Mortgage can help you accomplish your home renovation dreams.

 

Source: https://dominionlending.ca/sponsored/five-ways-to-refresh-your-home-this-spring