If you're a home owner, you can use your home to create income. First, figure out your financial needs and personal priorities. Then get some expert advice to help you decide.
2 ways to create income
1. Rent out all or part of your home
Consider this option if you have:
a second or additional property to rent out for all or part of the year,
an extra room or a separate apartment to rent out, or
the space to set up a bed and breakfast.
Learn more about renting out your home.
2. Borrow against the equity in your home
Consider this option if you:
do not want to move or rent out your property,
have paid off all or part of your mortgage,
can afford to carry a reverse mortgage or some other form of debt, and
are not worried about taking the money away from your estate.
The amount of income you get will depend on a number of factors:
how much you borrow
the interest costs on your loan
the amount of your monthly loan payments
any restrictions on the loan
the return on any investment you make with the money or the rate for any annuity you buy with the money.
Freeing up cash: One couple’s decision: Clifford and Carmen are retired, but are starting to run short of cash due to health problems. To stay in their own home, they will need in-home care. How can they pay those bills? Read Clifford and Carmen’s story.
Content in this section is provided in partnership with Investor Education Fund, a non-profit organization founded and supported by the Ontario Securities Commission that provides unbiased and independent financial tools to help Canadians make better money decisions. To find out more, go to: GetSmarterAboutMoney.ca