Mortgage Blog
Understanding Reverse Mortgages - Securing Your Financial Future
October 2, 2023 | Posted by: Sharon Patton
A reverse mortgage has become increasingly popular for thousands of Canadians 55 or older to secure financial peace of mind. This is done by putting your home equity to work for you.
Let's take a closer look at understanding how a reverse mortgage works, who qualifies, and how it can benefit you or a loved one.
In Canada, a reverse mortgage is a type of loan that is secured against a homeowner’s principal residence. While it bears some similarities to a regular amortizing balance mortgage, there are a few key differences, namely:
Applicants must be 55 years of age or older
Applicants must own their house/residence
No monthly payments required
Interest accrues on outstanding principal and interest
Ways You Can Use A Reverse Mortgage:
Increase cash flow
Preserve investments
Relieve financial pressure
Alleviate debt
Healthcare expenses
Home renovations / improvements
Travel
Assist a family member
Early inheritance
Buy a vacation property
To look at your specific scenario, please contact us!
Here are some benefits of a reverse mortgage:
Accessing tax-free funds
No monthly payments required
Still benefit from property appreciation
Flexible use of funds
Supplement retirement income
Maintaining a lower income tax bracket and preserving investments
Housing stability
If a reverse mortgage sounds like a solution for you or a loved one, let's chat today and explore the benefits and options.
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