The real cost of going back to the office + MORE Jul 10th

I’m an 82-year-old widowed woman, and my savings are depleting fast. I feel privileged, as I have the luxury of owning my own two-bedroom, one-bathroom condo.

I have two options: to selI and rent a one-bedroom apartment, probably starting at $2,000 a month, or staying in my home and getting a reverse mortgage. Do you recommend reverse mortgages in spite of high interest? I wouldn’t be eligible for a HELOC as I have no income, other than my pension and what I take out of my RRIF. 

Most people recoil at the idea of a reverse mortgage. I have been searching for independent advice on this subject, but most advisers have a vested interest in selling me something, i.e. the bank, mortgage brokers, etc. 

–Laurie

Why retirees might consider a reverse mortgage

I’m sorry to hear you are struggling with this decision, Laurie. I can imagine it is stressful. I will try to walk through the considerations of selling versus a reverse mortgage. 

As an 82-year-old woman, you have a 50% probability of living another 10 years…

If your daily commute currently involves a sweatpants-clad walk from the coffee maker to your home office, you may have seen significant benefits, including a rise in your bank account balance. A 2022 survey from CISCO found that Canadians saved an average of $11,530 per year while working remotely during the pandemic. About 92% of respondents said that forgoing fuel and commuting costs was a major contributor to what they saved while working from home in some capacity.However, your savings account may not be as flush as it used to be. According to Stats Can, as of May 2022, just over 25% of employees reported that they were able to choose their work location at least some of the time (including 13.9% who were able to choose where they work all of the time). If you are part of the nearly 75% who don’t get to choose what location you work from, you may have noticed commuting is expensive, and even more so with rising fuel and food costs.

Sarah Smith (name changed for privacy), an account manager from Hamilton, Ont…