A reverse mortgage is a loan but, unlike a forward mortgage (the type used to buy a home), the homeowner is not required to make any loan payments. It is a loan that allows you, the homeowner, to get money from your home equity without having to sell your home. You can borrow up to 55% of the current value of your home and receive funds as a lump sum, fixed monthly payment or line of credit. This can provide much-needed cash for seniors whose net worth is mostly tied up in the value of their home.
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Why You Should Consider Getting A Reverse Mortgage
Kingdom Mortgages • May 10, 2021
For many people, a reverse mortgage is a great way to increase financial well-being in retirement which can positively affect quality of life.
What is a Reverse Mortgage?
Benefits of a Reverse Mortgage
Given the right set of circumstances, a reverse mortgage can be an ideal way to increase your spending power and financial security in retirement.
Key benefits and advantages include:
- Lets you retire safely and securely in the home you love - you still own your home
- You don’t have to make any regular loan payments
- You may turn some of the value of your home into cash, without having to sell it
- There are no restrictions on how you use the funds from a reverse mortgage, it is up to you
- You don’t have to pay tax on the money you borrow
- This money doesn’t affect Old Age Security (OAS) or Guaranteed Income Supplements (GIC) benefits you may be getting
- You may have options as to when and how you receive the money
Who can qualify for a Reverse Mortgage?
All individuals must be:
- Canadian homeowner
- Age 55 years or older
- Home must be your primary residence
- Property must be well-maintained
- Property taxes must be paid on time
Studies indicate that more than 90 percent of all households who have secured a reverse mortgage are extremely happy that they got the loan. People say that they have less stress and feel freer to live the life they want.
How To Get A Reverse Mortgage
If you are considering a getting reverse mortgage, give us a call, email us, or book an appointment on our website! We can help you decide which option is best for you.
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