​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.

Renting 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.

Borrowing 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.

Caution

Weigh the advantages and risks of renting out or borrowing against your home. Once you start down that road, it may be hard or even impossible to go back

Creating income

How much income you get will depend on a number of factors:

• how much you borrow
• the interest costs on your loan
• the return on any investment you make with the money
• the rate for any annuity you buy with the money
• the amount of your monthly loan payments
• any restrictions on the loan.

Find out more about investing for income and how annuities work.

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.