If you have worked hard all your life, it is possible that you may still feel that you can’t afford to retire and have the lifestyle you’ve dreamed about. In fact, many Canadians today have a hard time saving enough to enjoy the type of retirement that they want to have. One solution to this problem may be to get a reverse mortgage. As long as you own your home and you are at least 55 years old, you can qualify for a reverse mortgage.
What is a reverse mortgage, and how does it work?
Simply put, a reverse mortgage is a loan that can be as much as 55% of the value of your home. (And with the way that home values have gone up in recent years, you may be surprised to learn how much you can actually get with a reverse mortgage!). This loan can be paid to you in one lump sum, or in regular payments in order to supplement your income. (You may also choose a combination of these two options.)
One big difference between reverse mortgages and other kinds of loans is that you do not have to repay a reverse mortgage on a regular schedule. In fact, as long as you continue to live in your home, you do not have to back the loan at all. They may however be some upfront costs such as an appraisal fee when you first apply.
A reverse mortgage must be repaid when you sell your home, or if you pass away the loan must be paid by your estate.
The money that you get from your reverse mortgage may be used for any purpose you like. Many Canadians choose to use the money to supplement their income and just live a comfortable retirement. Others choose to use the money to enhance their lifestyle – perhaps going on a few more vacations each year. How you use the money is completely up to you!
Additionally, getting a reverse mortgage does not affect your homeownership, nor does it mean you’ll be penalized if you are collecting Old Age Security or Guaranteed Income Supplement payments.
Is a Reverse Mortgage the Right Choice for You?
As a mortgage broker in Toronto, I can offer you a reverse mortgage as well as a variety of other mortgage solutions. If you think that a reverse mortgage might be the right choice for you, I would be happy to sit down with you and discuss both the benefits and drawbacks. I can also show you any other options that you might qualify for so that you can make an informed choice.
Call Me Today
You deserve to enjoy your retirement, but you may need a little extra help to make it financially comfortable. Contact me today to learn more about reverse mortgages and other mortgage solutions that can help!