Getting to Know the Reverse Mortgage
A reverse mortgage is designed to allow Canadian homeowners age 55+ to access up to 55% of their home’s value and turn it into tax-free cash without having to move or sell. The best part? There are no monthly mortgage payments required!
If you are looking towards retirement, or have elderly parents that could use some extra cash, the reverse mortgage might be the perfect choice for you! Below is some more information to help you understand the value of this great mortgage product:
Benefits of a Reverse Mortgage
Many retirees take out a reverse mortgage to boost their retirement income, pay for home renovations, pay for health care expenses or to help them pay off debt while staying in their current home.
Value of a Reverse Mortgage
You receive the money tax-free. It is not added to your taxable income so it doesn’t affect Old Age Security (OAS) or Guaranteed Income Supplement (GIS) government benefits you may receive.
No regular mortgage payments are required while you or your spouse live in your home. The full amount only becomes due when you and your spouse no longer live in the home
You maintain ownership and control of your home. You will never be asked to move or sell to repay your Reverse Mortgage. All that’s required is that you maintain your property and stay up-to-date with property taxes, fire insurance and condominium or maintenance fees while you live there.
Cost for a Reverse Mortgage
Reverse mortgages are commonly mistaken for charging a lot of upfront costs. However, it is much the same as a traditional mortgage in Canada. The costs of which include an appraisal fee, legal fees and an administrative fee. Plus, you get tax-free cash upfront without the requirement of monthly mortgage payments!
If you are interested in learning more about a reverse mortgage, or if you are not sure if this is the right option for you and your family, please do not hesitate to contact me today! I would be happy to take a look at your current financial situation and walk you through your options to help you make the best choice.