After retirement, Most Canadians will depend on taxable pension (if planned well at the right time) and with the rise of medical bills and living cost it will become difficult for them to match up and enjoy their retirement life. That’s where reverse mortgages can help.
What is reverse mortgages
You may be able to borrow up to a certain percentage (home equity)of the current value of your home. The amount you can borrow will depend on your age and Current Value of Your Home
Current Value of Your Home – Any mortgage balance = Home equity
In other words - you are selling / en cashing a part of your house back to the bank / lender and the bank / lender pays you cash for your home equity.
You still maintain the home ownership and responsible to maintain and pay all taxes / dues on time but no monthly payments are required.
Is it for me?
With reverse mortgage - homeowners above 55 Yrs. or above can get the cash they need to:
- Pay off debt
- Pay for travel
- Renovation
- Medical bill
- Living cost
They have the freedom to use that cash and can get a lump sum amount or regular monthly payments to enjoy their retirement.
Before you decide, lets look a the pros and cons:-
Pros
· No monthly payments required
· Maintain the home ownership and no need to sell
· Tax free amount as it is a loan
· Does not affect your social security benefits
· Easy to qualify
· Lower interest rate than credit cards or personal line of credit
Cons
· Loan amount Is interest liable
· Will reduce equity in your home
· Higher interest rate than normal mortgage / HELOC
· To pay off you will need to sell off your house (same as normal mortgage)
· Processing or closing cost liable
Factors that affect the amount you can qualify:
- Age
- Location of house
- Type of home
- Current value of house
- Interest rate
Reverse mortgage can be a great option for home owners above 55 Years who do not want to sell their home and would like to lead a comfortable retirement life.
Learn more and start the process today: http://bit.ly/MortgageForSeniors
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