Is A Reverse Mortgage Right For You?
If you are a senior who is having problems keeping up with medical, household and day-to-day living expenses, perhaps a reverse mortgage can help by converting your home equity into cash you can use today.
How It Works
• If your home is fully paid for or only owe a little, you can borrow against the equity without making payments.
• The older you are the more equity you can re-finance.
• No repayment is due until the owner's death.
• If your home loses value, you can never owe more than the home is worth when sold.
• Do you qualify for a reverse mortgage?
• Are you a home owner in Canada?
• Are you 55 years of age or over?
• Is your current mortgage under 40% of your home’s total value?
If you answered yes to these questions, you are eligible! However, being eligible does not necessarily mean it is the best option for you, as every situation has its unique circumstances. You want to be sure a reverse mortgage is the best route for you to take before choosing it. So don’t hesitate to give me a call to discuss to learn more.
Reverse Mortgages - Do not work for everyone
• Up front expenses are higher than home equity loans and mortgages so it is more suitable if you planning on staying in your home for a longer period of time.
• Younger seniors can borrow less; currently a 62 year old can borrow up to 62% of the home's value, while a 82 year old can borrow up to 82% of a home's value
• Not a good option if you plan on leaving your home to your kids as the equity is reducing as time passes along.