New study reveals most Canadians are not, in fact, 'waiters' seeking inheritance from parents
TORONTO, June 19, 2014 /CNW/ - A new study commissioned by HomEquity Bank, provider of the CHIP reverse mortgage, shows 45% of Canadians surveyed are not expecting an inheritance from their parents, compared to 35% who do expect to receive a financial bequest. Twenty per cent of respondents don't know if they will receive an inheritance.
And, nearly all respondents (94%) who expect to receive an inheritance say they are willing to give up half their inheritance to maintain or improve their parents' lifestyle, compared to just 6% who would not be willing to do this.
These are the findings of an Ipsos Reid survey, where 1,025 Canadians were interviewed on the topic in May 2014.
With a reverse mortgage, parents can often be worried about tapping into the equity in their home and potentially depleting the inheritance. However, the survey shows adult children don't seem to mind.
"We do sometimes see examples of entitlement, but they're definitely in the minority. We often find adult children aged 45+ are very focused on what's best for their parents and they are very willing to forgo half their inheritance to improve their parents' lifestyle. In some instances funds are required to make improvements to the house or pay for in-home medical care. Adult children of seniors often have their own expenses of paying off the mortgage, putting their kids through school, vacations, etc. Having to support two households can put a lot of strain on the family as a whole," explained Yvonne Ziomecki, SVP, HomEquity Bank.
According to the Ipsos Reid survey, younger Canadians aged 18-34 are most likely to expect to receive an inheritance (39%).
Among those expecting to receive an inheritance, women (96%) are slightly more likely than men (92%) to be willing to give up half their inheritance to maintain or improve their parents' lifestyle.
How the CHIP reverse mortgage works:
- Visit www.chip.ca or call 1.877.503.2447 to determine the amount of money available, which is based on the homeowners' age and the location and type of home as well as the home's current appraised value.
- Access money as a one-time lump sum, as monthly payments or both – it's tailored to individual needs.
- Up to 50% of the home's value can be accessed and the money is tax free. Unlike a traditional loan, no payments are necessary until it's time to move or sell the home.
"The majority of our clients still leave an inheritance to their children," noted Ms. Ziomecki. "In most cases at the time of sale our clients have an average of 50% of the equity left in their homes."
About HomEquity Bank
HomEquity Bank is a Schedule 1 Canadian Bank offering the CHIP reverse mortgage solution www.chip.ca. It was founded 28 years ago as an annuity based solution addressing the financial needs of Canadians who want to access the equity of their top asset – their home.
SOURCE: HomEquity Bank
For further information: For further information on the CHIP reverse mortgage please contact: Teresa Donia, iAMBIC Communications, [email protected], 905-508-5550; Yvonne Ziomecki, Senior Vice President, Marketing and Sales, HomEquity Bank, [email protected], 647-723-6812