If you are a homeowner age 55+ then you are eligible to access your home’s existing equity through a Reverse Mortgage.
Reverse Mortgages are one of Canada’s fastest growing financial products over the recent years. There is a growing list of reasons for the increased demand for Reverse Mortgages. The most common drivers include:
- High inflation rates have increased the cost of everyday expenses (groceries, gas, transportation, etc.)
- The rise in real estate values increased the existing equity of homeowners
- Homeowners wish to age in the comforts of their own homes
It is important to learn more about this product and not rely on rumors or any previous information regarding Reverse Mortgages.
The industry points out these 3 most frequent uses for accessing the existing home equity through a Reverse Mortgage:
- Supplement monthly income
- Provide early inheritance to your family
- Finance your home renovations
As is always the case, the financial industry adapts to public demands and as a result of this product revolution, Reverse Mortgages are often a topic of discussion with our clients.
Supplement Monthly Income
A Reverse Mortgage can be set up in multiple ways. The two most implemented methods of using a reverse mortgage are:
Take a one-time lump sum payment OR set up monthly deposits into your bank account as a way to supplement your monthly income.
Scenario 1:
Husband and wife in their 70s receive CPP and OAS payments every month. In addition, they would like to receive additional monthly deposits of $1,200 by tapping into the existing equity of their home.
The clients can achieve this by setting up a Reverse Mortgage that will provide $1,200 / monthly without the need to repay until the house is sold. Furthermore, no interest payments are required until the property is sold.
Provide Early Inheritance
Another way to set up a Reverse Mortgage is to receive a one lump-sum payment deposited into your bank account.
Scenario 2:
Husband and wife in their late 60s wish to help out their adult children with the purchase of their first home – a 3 bedroom 3 bathroom townhouse.
Husband and wife apply for a Reverse Mortgage to take out $150,000 from the existing equity of their home to help their children with the downpayment on the purchase.
The repayment of the $150,000 and any accrued interest can be done over a period of time or upon the sale of their home at any time in the future.
There are many creative ways to set this up properly so ensure to contact the professionals at Access My Home Equity for more information.
Financing a Home Renovation
More and more homeowners wish to age in the comforts of their own home. After all it is what everyone is used to, plus hosting family members for dinners at a nursing home is just not the same. If your home requires a home renovation or you wish to upgrade any room, using a Reverse Mortgage to finance this can be a great solution.
There is many reasons why Reverse Mortgages are on the rise in Canada. We strongly recommend working with professionals that have many years of experience working with Reverse Mortgages.
Reach out to our team of experienced professionals at Access My Home Equity today for a free consultation:
Email: info@accessmyhomeequity.ca
Phone: 604-362-4467
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