There are currently two Banks in Canada that provide reverse mortgages and more than 53 other financial institutions (banks, credit unions and mono-line lenders) providing traditional mortgages and home equity lines of credit.
What is a Reverse Mortgage?
- A reverse mortgage is a way for homeowners 55 or older to turn up to 55% of the value of their home into tax-free cash.
- It’s a loan secured against the value of the home, but unlike a traditional home equity line of credit (HELOC) or a conventional mortgage, it does not require monthly mortgage payments for as long as the owner(s) live in the home.
- The homeowner always maintains ownership and control of their home.
What are the Homeowners Obligations?
- The homeowner is required to pay their property taxes (property tax deferral programs are acceptable one the reverse mortgage is set up), maintain valid home insurance and keep the home well maintained.
How are Senior Homeowners Using Their Homes to Improve Retirement?
- Pay off debts (mortgages, lines of credit, credit cards, car loans) – Improving Monthly Cash Flow
- Renovations and home improvements for comfort and accessibility
- Pay for unexpected expenses or medical costs
- Help children or grandchildren with a warm inheritance
- Travel more
- Improve day to day standard of living
- Investment diversification (real estate purchases and portfolio diversification)
Benefits of a Reverse Mortgage for Seniors Homeowners
- Seniors can stay in their homes & Age in Place
- Maintain full ownership and control of their home and finances
- No Monthly Payments to make
- The money is Tax-Free and does impact other sources of income like (OAS, GIS or Pensions)
How Can You Get a Free No Obligation Information?
Email Clint: info@seniorssynergy.com