House Rich & Cash Poor? A Reverse Mortgage Could Give You More Freedom
As we age, our financial needs often become more pressing. In the past few years, we have watched the value of homes in many Ontario communities surge at unprecedented rates. Simultaneously, as the cost-of-living increases, seniors in Canada on Fixed Incomes are finding themselves needing extra income to cover expenses like in-home healthcare, home repairs or other bills. The solution? A reverse mortgage.
How it works
Maybe you’ve heard the term before but you’re not exactly sure how it works. A reverse mortgage is a type of home equity loan that allows someone to borrow against the value of their property. The borrowed amount is paid out in tax-free monthly segments (unlike RRSP payments) and can be used as income supplementation. It is tax free because it is your own money. Different from a traditional mortgage, with a reverse mortgage, the borrower does not have to make any monthly principal or interest payments. Instead, the loan and all interest owed are paid back when the borrower sells the home, moves out, or passes away.
What a Reverse Mortgage can do for you
Imagine paying yourself an extra $1000 of untaxable income each month! That could give you the support you need to combat the rising costs of groceries and unexpected expenses from failing health — or even allow you to help your grandchildren pay for school or put together their first down payment on their new home. Further to that, the distress of a partner falling ill and needing permanent care can be eased when finances are not an issue. This can be especially helpful if you no longer have a lot of savings or retirement funds.
Another benefit of this type of debt product is that it allows you to stay in your home for longer. As we age, many of us want to continue living in the comfort of our own homes for as long as possible. With a reverse mortgage, seniors can tap into the equity in their homes without having to sell or move.
Learn More Today
If you’re considering a reverse mortgage, it’s important to talk to a mortgage professional who can help you understand the pros and cons and apply them to your specific circumstance. Let us help you determine whether this option is the right choice for your financial situation. Gerard Buckley, a Seniors Mortgage Professional and Reverse Mortgage Specialist has decades of experience on his side, and he is dedicated to finding long-lasting solutions for seniors looking to stay in their homes.
A reverse mortgage can provide financial security and peace of mind, so reach out today to learn how this product could work for your family.