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 mortgageMortgage A loan that you get to pay for a home or other property. Often the loan is for 20 years or more. You make a set number of payments for a set amount each year.+ read full definition,
- can afford to carry a reverse mortgage or some other form of debtDebt Money that you have borrowed. You must repay the loan, with interest, by a set date.+ read full definition, and
- are not worried about taking the money away from your estateEstate The total sum of money and property you leave behind when you die.+ read full definition.
The amount of income you get will depend on a number of factors:
- how much you borrow
- the interest costs on your loanLoan An agreement to borrow money for a set period of time. You agree to pay back the full amount, plus interest, by a set date.+ read full definition
- the amount of your monthly loan payments
- any restrictions on the loan
- the return on any investmentInvestment An item of value you buy to get income or to grow in value.+ read full definition you make with the money or the rate for any annuityAnnuity A contract usually sold by life insurance companies that guarantees an income to you or your beneficiary at some time in the future. An annuity is a contract with a life insurance company. When you buy an annuity, you deposit a lump sum of money, and the insurance company agrees to pay you a guaranteed…+ read full definition you buy with the money.