Canada’s inflation rate falls to 2.5%, paving way for another interest rate cut + MORE Aug 23rd

Tuesday’s consumer price index report says prices for travel tours, passenger vehicles and electricity helped drive the headline figure lower.

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Meanwhile, shelter costs are still the main driver of inflation as Canadians face significantly higher rents and mortgage payments.

The federal agency noted, however, that shelter price growth slowed last month to 5.7% year-over-year, down from 6.2% in June.

Inflation has remained below 3% since January and fears of inflation reaccelerating have diminished as the economy has weakened…

Despite the high profile, there’s not a huge number of reverse mortgage products available in Canada. The two main ones of which I’m aware are Equitable Bank and HomeEquity Bank (a.k.a. CHIP Reverse Mortgage). According to Canada.ca, reverse mortgages typically cost more than conventional mortgages and home equity lines of credit (HELOCs). This is because the borrower is not required to make payments, so the lender must wait years to get its money back—seven to 12 years, on average.

My personal take is that reverse mortgages should be considered only as a last resort for homeowners who really need a bit of tax-advantaged monthly income, who don’t have heirs to whom they can bequeath their estate, and who want to stay in their home as long as possible…