Need money but don’t want to sell your home? A reverse mortgage might be a good option
For many Canadians, their actual financial needs in retirement are different from what they planned for. In fact, many find themselves struggling to make ends meet or resort to changing their lifestyle just to get by. I’ve heard stories of people running through savings and eventually cutting back on essentials like groceries, worrying whether they can afford an occasional outing, and even cutting back on the number of hours for in-home care providers. A reverse mortgage may be the right solution by helping you free up equity that is tied up in your home.
A reverse mortgage allows you to access the equity in your home, tax-free
People worry that getting cash in this manner might cause claw-backs to Old Age Security, GIS, or pension income. That is not the case! There are no income tax consequences to accessing the equity in your home using a reverse mortgage. As well, there are no monthly payments required.
Reasons for getting a reverse mortgage include the following
Not clear on how a reverse mortgage can help you, or what it could enable you to do? Here are some examples of ways that the funds can be used to make your life easier:
• Relieve the stress of debt – pay it out and don’t have the stress of monthly payments
• Do essential home renovations rather than worrying the house is going to fall down around you
• Gift money to grandkids for education so they don’t have to go into debt
• Assist adult children with a down payment on their home purchase
• Enhance your monthly cash flow so you can enjoy a more comfortable lifestyle
• Pay for in-home care without having to burden other family members
• Travel and enjoy your retirement years
• Buy a vacation property or investment property
Do you meet the requirements for a reverse mortgage?
• Over the age of 55?
• Not planning to sell your home anytime soon?
• Stressed by lack of cash flow?
• Burdened by debt?
• Feel “house rich, but cash poor”?
Talk to a Certified Reverse Mortgage Specialist
Reverse mortgages aren’t the only retirement planning solution. In addition to being a Mortgage Broker, I’m also a Certified Reverse Mortgage Specialist. I can help you evaluate the options for freeing up some of the equity in your home, and assist you with making an informed decision. If you’d like to discuss these options, please call me or email me. I would be happy to chat with you about your options.
To read more about other borrowing solutions for retirement, check out my other articles here.