There are a few ways you can borrow against the value of your home to create income. For example, you can use a reverse mortgage, a loan or a line of credit to:
- Borrow a lump sum and invest for income
- Borrow cash only when you need it for income
- Borrow a lump sum and buy an annuity to create income for life.
- The income you get will vary depending on how you borrow and what you do with the money. Your costs will vary, too.
We've created a series of examples that compare these options. Your numbers and situation may be different, but the lessons learned may still be helpful.
How do I get income from a reverse mortgage?
What other ways can I create income from my property?
Remember: Deciding to take money out of your home is a big decision
Make sure you know about all the costs, the benefits and the risks. Also, keep in mind that the best strategy of all is to find ways to cut your expenses, so that you can avoid borrowing in the first place.
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.
