Keep Your Home and Enjoy Senior Life
It’s happening — Canadian Baby Boomers are entering the stages of retirement and beyond. Have you planned out your senior housing needs? Maintaining your home while still being able to do the things you love with a reduced income is a challenge for many. Have the impacts of COVID-19 left your household with a smaller budget? Find out what you can do as a resident of Ontario to enjoy your years of retirement — all while keeping your beloved family home!
You Have Options:
- Reverse Mortgage
- Receive one large payout or opt for smaller amounts over time from the equity in your home. The full loan amount plus interest must be paid back upon the house selling or the death of all original signers. Applicants must all be over 55 years of age.
- Sell to an Investor and Lease
- Access the majority of your home’s equity at once regardless of your credit score and stay as a renter with the option to buy back or sell at the end of an agreed-upon time period. There are no age restrictions, however, a fee is generally charged if you choose to sell at the end of the term.
How a Reverse Mortgage can Help Seniors in Ontario
Do you own your house outright? Being mortgage-free can feel liberating — unless you’re unable to travel, assist loved ones, pay for medical needs or purchase a vehicle because all of your funds are in your home’s equity. A reverse mortgage provides financial relief once regular income has been replaced by pensions. Learn how this senior housing product can be tailored to your personal needs and benefit from the equity you’ve worked so hard to have.
Take Out a Lump-Sum Loan
Homeowners have the option to take out one, large portion of their house’s value all at once to use for whatever they’d like. Are you uncomfortable seeking out part-time work during this pandemic? Stay safely on your own property and use the money to cover expenses while the virus is circulating. Want to help your grandchild pay for tuition? Gaining access to a one-time payment gives you that freedom without adding to your monthly expenses. Typically, a reverse mortgage only has to be paid out when the home is sold or the final signing officer passes away, however, it should be noted that interest is charged on these loans, eating into the remaining equity.
Take Out a Small Amount and Receive Monthly Payments
The second option when choosing a Reverse Mortgage is to get a smaller lump-sum amount deposited into your account and then receive the rest of the loan over time as a supplementary income. Is debt starting to eat your entire pension? Using a reverse mortgage to pay down large amounts owing on credit cards or other lending products is a way to get out of that cycle while still being able to stay in the comfort of your own home.
Sell Your Home to Stay in It
As Ontario home values steadily increase, a new solution to access equity has arrived. Companies or individual investors now offer services where they will purchase your house from you (sometimes for up to 70% of its value for default protection reasons) and then lease it back to you for an extended term. At the end of the term, you as the original homeowner can decide to buy back the property or sell it for good — with a commission fee to the investor or company, of course.
Why Choose This Method
Wondering why a senior would choose this option over a reverse mortgage? For starters, selling your abode to an investor eliminates any credit score concerns you may be facing. Low scores or high debt ratios make obtaining reverse mortgage products from a top-tier bank difficult — if not impossible. Selling to an investor or company gives you access to your home’s equity without all of the red tape and income verification that a bank may demand from you. It can also make future planning easier as you have a set monthly rent for the predetermined time period in addition to the proceeds of your house sale.
Finding Out What Works for You
With so many options available for seniors looking to get the most out of retirement, it’s difficult to decide what’s best for your situation. That’s where having an expert on your side like Gerard Buckley helps. Gerard has an extensive history of assisting families with housing decisions through all life stages. He offers virtual meetings where he learns about your individual needs. From there, he helps you come up with a plan that best suits your current financial circumstance.
Offering office locations in Toronto, Owen Sound, Collingwood or Saugeen Shores and bringing an A+ Better Business Bureau rating with him, Gerard is equipped to guide you through senior housing solutions. Contact him today to get control of your future.