Reverse Mortgage:
Definition: It is a loan that allows you to get money from your home equity without having to sell your home. This is sometimes called “equity release”. You may be able to borrow up to a certain percentage of the current value of your home. The maximum amount you will be able to borrow will depend on your age, your home’s appraised value and your lender.
Features:
- No monthly mortgage payments
- Easy to qualify as it’s based on the equity
- in your home
- Money received is tax-free
- Maintain ownership. You live in your home for the rest of your life or until you sell your home
- Approved for life, no need to re-qualify
- Available to home owners over the age of 55
- Can be used to payout an existing mortgage, payoff other debts, renovate your home, pay for home care so that you can live in your home, give financial help
- to your family
- Can take the reverse mortgage in one lump-sum
- or future payments
Why Are Reverse Mortgages Popular?
- Life expectancy is increasing in Canada
- Rising inflation is making it hard to live on
- fixed pensions
- Allows for home owners to tap into existing
- equity in their home
- Allows home owners to live their retirement on
- their own terms
As you may know, a reverse mortgage can provide tax-free income, enhance financial stability, or support a more comfortable retirement. Understanding this tool is crucial, and we encourage involving a trusted family member for additional support and perspective. Please contact of of use today for a no-obligation consultation to answer any questions and provide you with all the necessary information. Our goal is to empower you with the knowledge to make the best financial decisions for you and your family.