Reverse mortgages are becoming increasingly popular in Canada, where a larger demographic is finding themselves "cash poor but house rich".
If you have built up equity in your home and are now approaching retirement or already retired, and find yourself with insufficient funds to make your day-to-day costs, let along take a vacation, tackle some home renovations, pay medical bills, or help out your family with finances, then a reverse mortgage might be a good fit.
There are no credit checks or income requirements, and most important -- you maintain ownership and control of your home.
You will NEVER be forced to sell -- EVER.
A reverse mortgage allows homeowners over the age of 55 to qualify for up to 55% of their home value and convert it into tax-free cash. The money is yours to use how you see fit; here are some common reasons:
- Paying off your existing mortgage to free up cash
- Pay off other debts (like a line of credit or a loan)
- Home renovations OR to make your home more accessible
- Help your family -- your children, your grandchildren
- Improve your day-to-day standard of living
- Take a trip or make a special purchase to celebrate retirement
- Medical bills or health care
- Additional income to supplement your pension during your retirement years to pay off debt or renovate their home without having to move or sell.
Relieve Financial Stress. Qualify for up to 55% of the equity in the home to pay off debt or unforeseen expenses.
No Payments. No payments are required (principal or interest) for as long as the homeowner lives in the home.
Easy to Qualify. Income verification and credit score are not required to qualify.
Maintain Ownership. The Homeowner maintains title ownership of the home.
Tax-Free Money. The money accessed is tax free. Does not affect any government benefits you may be receiving (including Old Age Security or Canada Pension Plan).
How to Qualify for a Reverse Mortgage:
- You and anyone else on title of the home is aged 55 or over
- The home is your primary residence
- Any existing mortgages, or loans secured against your home, must be paid off using the reverse mortgage funds; whatever is leftover, is yours
The amount you qualify for depends on several factors including your age, location of the home, and the current home value (determined by an appraisal). As a rule, reverse mortgages are not issued for more than 55% of the home value.
As the life expectancy age rises in Canada, it is important to have a stress-free and financially stable retirement.
Reverse mortgages can be complicated for family members and family situations. It's important to understand your options, take your time, and most importantly, speak to a professional who can help.
I am a Certified Reverse Mortgage Specialist and my service and advice is absolutely free, so please give me a call and let's find out of if this is the right option for you.