Retire Sooner With A Reverse Mortgage!
April 17, 2017 | Posted by: Allison Kurys & Kim Owen
Dreaming of Retirement?
For many mature Canadians, their home represents a significant portion of their net worth; however, for most this asset is not readily accessible. Thus, with saving for retirement becoming increasingly difficult, selling their home can seem like the only option available for achieving financial stability in their golden years. Fortunately, there is another option available, where mature homeowners can use the equity they have built up in their property without having to sell their family home. A reverse mortgage is a great financial solution that can help many mature Canadians achieve the dream of retirement sooner, without having to rely on inadequate government pensions or moving out of their home.
What Is A Reverse Mortgage?
A reverse mortgage is a type of home loan available for mature homeowners age 55 years and older that requires no monthly mortgage payments. This alternative financial solution allows homeowners to access a portion of their home equity to use as they see fit:
- Retirement living;
- Paying off debt;
- Medical expenses;
- Assisting loved ones with schooling or down payment costs;
- And even that dream vacation!
The funds can be received via tax-free monthly cash payments over time or one lump sum. The homeowner remains on title of the property and there’s no requirement to move out at any certain time. The loan only becomes due when the homeowner moves out and the property is sold. Or if the homeowner passes away, the heirs have the choice of either paying off the loan and keeping the house, or using the sale of the property for payment of the loan.
With a reverse mortgage Canadian seniors can get the money they need to finance their retirement and stay in their homes as long as they like.