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ARE YOU A 55+ HOMEOWNER?

Reverse mortgages offer a unique advantage over traditional refinancing or secured lines of credit, as they allow homeowners aged 55 or older to access their home equity without having to make monthly payments towards the loan, providing a flexible and convenient option for supplementing retirement income or financing unexpected expenses. 

If you're a homeowner who is 55 years or older, in Ontario or Alberta, a reverse mortgage can help you access the equity you have built up in your home without having to sell it. With a reverse mortgage, you don't have to make any monthly payments towards the loan. Instead, the interest on the loan is added to the total amount owed, which is only repaid when you sell your home or pass away.

 

Supplement Your Retirement Income

 

If you're finding it challenging to make ends meet in retirement, a reverse mortgage can provide you with extra cash flow to cover your expenses.

Pay off Debt

 

If you have high-interest debt, such as credit card debt, you can use a reverse mortgage to pay it off and reduce your monthly payments.

Fund home renovations: If you want to make upgrades to your home to make it more comfortable or accessible, a reverse mortgage can help you access the funds to do so.

Cover Unexpected Expenses

If you have unexpected medical bills or other expenses, a reverse mortgage can provide you with the funds you need to cover them.

Gift A Down Payment To Younger Family Members

 

With a reverse mortgage, you can access the equity in your home to provide younger family members with a down payment for their own homes. This can be a wonderful way to support the next generation and provide them with a helping hand.

 

 

It's important to note that a reverse mortgage is not the right choice for everyone. However, if you carefully consider your financial situation and consult with a mortgage professional, you can determine if it's the right option for you.

If you do decide to proceed with a reverse mortgage, there are a few things to keep in mind:

 

  • You will continue to own your home and can live in it for as long as you wish.

  • The amount you can borrow will depend on the value of your home, your age, and other factors.

  • The interest rate on a reverse mortgage may be higher than on a traditional mortgage, but the interest is only charged on the outstanding balance.

  • You will need to pay certain fees, such as an appraisal fee and legal fees, to set up the reverse mortgage.

 

 

Overall, a reverse mortgage can be a valuable tool for Canadian homeowners who are looking to supplement their retirement income, pay off debt, fund home renovations, or provide a down payment to younger family members. Learn more about reverse mortgages and whether they're right for you.

 

Contact us so we can help guide you through the process. We are a trusted mortgage brokerage in Ontario and Alberta. 

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