NC)—There is some good news for seniors who want to improve their cash flow by accessing some of the equity built in their home. With real estate prices rebounding, those wishing to downsize and move into that cute, little condo across town can start thinking about listing their house and packing their belongings. But, those 60 plus homeowners still wishing to stay in their home may consider another option - a reverse mortgage.
Unlike traditional loans, a reverse mortgage doesn't require homeowners to service the interest or repay the principal for as long as they own and live in their home. And with interest rates on reverse mortgages now comparable to those of other home equity borrowing options, there has never been a better time for Canadian seniors to access their home equity.
A reverse mortgage allows Canadians 60 and over to make their existing investments last longer by using the funds to avoid RRIF withdrawals above the annual minimum or postpone the sale of non-registered investments. They can also choose a reverse mortgage to discharge existing debts and thereby increase monthly cash flow.
Over the past few months, reverse mortgage rates have come down significantly to give borrowers more flexibility in how their home equity can be used to enhance their lifestyles. The true beneficiaries are Canadian seniors, who now have a low-cost, stable, long-term borrowing solution giving them peace of mind that their home equity will be there for them whenever they need it.
HomEquity Bank, Canada's newest bank is the leading provider of reverse mortgages in Canada under the CHIP Home Income Plan brand. Details on reverse mortgages can be found online at www.chip.ca, toll-free at 1-866-522-2477 or by contacting your financial advisor.