REVERSE MORTGAGES
A reverse mortgage allows you to get money from your home equity, borrowing up to a maximum of 55% of the current value of your home, without having to sell your home.
You’ve made your payments and paid down your mortgage, and now you have a substantial amount of equity in your home. A reverse mortgage allows you to take advantage of this equity without having to sell your home. If you’re 55 years and older, a reverse mortgage could be a great fit for you.
WHAT IS A REVERSE MORTGAGE?
IS A REVERSE MORTGAGE FOR ME?
Why would you need to take advantage of a reverse mortgage? You can use the funds from your reverse mortgage to:
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Support monthly cash flow,
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Complete home repairs and improvements,
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Pay unexpected bills or debts,
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Pay for healthcare costs,
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Gift a down payment to your kids or,
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Take a vacation!
PROS AND CONS OF A REVERSE MORTGAGE
PROS
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No regular payments,
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Some of your home’s value becomes cash without it being sold,
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There are no taxes on the borrowed money,
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Various options on how to receive the funds (payments or a lump sum),
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Any Guaranteed Income Supplement benefits or Old-Age Security is not affected that you could be getting.
CONS
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Higher interest rate compared to other types of mortgages,
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Potentially, less money in your estate to leave to your beneficiaries,
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If you pass away, the estate has to repay the loan and interest within a certain amount of time.
HOW TO PAY A REVERSE MORTGAGE BACK?
INTERESTED IN A REVERSE MORTGAGE?
Everyone’s situation is different so let me help you figure out what works for you. If you are interested in learning more about your reverse mortgage options in Calgary, Red Deer, Okotoks, Lethbridge or Cochrane, send me an email
Reverse mortgages are typically repaid either when you move out of the home or when the last borrower passes away. However, the loan may need to be paid back sooner if the home is no longer your principal residence, you fail to pay your property taxes or homeowners insurance, or do not keep the home in good repair.
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