Getting A Reverse Mortgage
Canadian homeowners want financial security. There is a solution! You can keep your home and have no mortgage payments. You can access 55% of the value of your home and receive your tax-free cash on your own terms, whether it’s over time or all at once. This does not affect your Old Age Security (OAS) or Guaranteed Income Supplement (GIS) government benefits. This means by doing this not only are you keeping your home that you love, but you are supplementing your income as you get older. You are putting yourself in a better position without the stress.
Advantages
- Access up to 55% of your home’s equity, totally tax-free
- No monthly mortgage payment required if you live in the home
- Stay in the home as long as you like as long as you are the full owner on title
- No restriction on how you spend the money
- Gain financial freedom without drawing from your retirement savings
Disadvantages
- Interest rate is slightly higher than mortgage or home equity line of credit (HELOC)
- As with any loan the balance increases over time
- If repaid in the first five years, there may be a pre-payment penalty, as with any mortgage
- You are borrowing against your home which may affect you if you want to borrow in a different way in the future
Is A Reverse Mortgage Right For You?
If you are not looking to or able to refinance for a mortgage or HELOC, this may be an option. Rather than a HELOC where interest compounds monthly, which can get expensive, the reverse mortgage option loan and interest is only due when you sell or do not live in the house. There is no income qualification which is important for seniors when they look for a mortgage. 99% of the homeowners have money left over when the reverse mortgage is repaid.
Call us if you have any questions.