If you’re a Canadian homeowner who’s at least 55 years old, a reverse mortgage may be able to provide a number of solutions for you, including supplementing your current income while you continue to live in your home to help you enjoy a more fulfilling retirement.
You’ve worked hard all your life, so you shouldn’t have to settle for a cash-strapped lifestyle or having to sell your home in your retirement years.
A reverse mortgage is truly a unique borrowing option as all other lending products that enable homeowners to tap into home equity – such as a home equity line of credit (HELOC) or mortgage refinance – require regular payments. Borrowers must also qualify based on income and credit scores.
With a reverse mortgage, you can access up to 55% of the value of your home and your credit is rarely a factor. And, most important, you retain control over your home. You’ll never be forced to sell and you’re only required to pay back the loan when you sell or leave your home.
When you receive funds through a reverse mortgage, you can use them however you choose. And they’re tax-free, which means your current pension or other income won’t be impacted.
Popular reasons for tapping into home equity through a reverse mortgage include: Improving cash flow to supplement retirement income and savings; Paying off debt; Updating or renovating to make the home more accessible; Helping children or grandchildren; and Taking a dream vacation.
How do I qualify?
There are a number of factors that come into play when determining qualification for a reverse mortgage, including the following:
- You and your spouse are both at least 55 years old and hold title to your home
- The reverse mortgage is for your primary residence (can’t be used for a vacation home, cottage, rental property, etc)
- You have sufficient equity built up in your home
- Your property is located in an area where a reverse mortgage provider lends
Wondering if a reverse mortgage may be the right solution for you or your loved ones? Answers are just a call or email away!