Why Consider a Reverse Mortgage During Retirement
Do you have an employer-sponsored pension plan? Do you know how much government retirement income you may receive? Will you have enough money to retire in comfort? These are vital questions you need to answer as you plan to retire from your career. You may be surprised and maybe a little disappointed once you investigate how much you need and how much you have. Deciding how you will handle any shortfalls or any events that threaten your financial stability, can be challenging. If you need major surgery or hire the services of in-home health care professionals, will you be able to afford it? One idea to help mitigate these possibilities is by using a reverse mortgage.
The Basics of a Reverse Mortgage
Using the largest asset you may ever own helps you retain the 'gold' in your golden years. If you haven't heard of this mortgage product for Canadian retirees, here are the basics:
- It Uses Your Equity: Just like a refinance or a home equity line of credit (HELOC), this type of financial tool utilizes up to 55% of the equity in your home.
- Income Isn't a Factor: Unlike HELOCs, reverse mortgages do not rely on your income for qualification purposes. Your credit score is not a relevant factor either.
- It May be Easier to Qualify: These types of mortgages look at your age (55 or older) and your home's equity.
- You Don't Have to Make Regular Payments: Instead, payment in full is due when you move out of your home or pass away. Thus, you won't default on your loan.
- The Interest Rate is Lower than Other Loans: Many of us have credit cards, payday loans, or personal loans with high-interest rates that have become a financial burden. Reverse mortgage rates are much lower than many of your other loans.
- Receiving Funds is Easy: You can receive your funds either in a lump sum or through installments. You may be able to receive funds in a combination of both.
- You Can Use the Money for Your Needs: There are no restrictions on using the funds. Use them for expenses, pay off debt, or take a vacation. It's up to you.
Support Comes in Many Forms - Try Home Instead
Stop fretting over how you will afford to age-in-place when you consider financial vehicles such as a reverse mortgage. The next step is to retain quality home health care services from a company you can depend on, such as Home Instead Richmond Hill & Vaughan. Our staff is well-trained and ready to support you throughout your retirement years. We provide a wide range of services tailored to you and your family's needs. Look to us for assistance with light housekeeping, dementia and Alzheimer's care, cooking. We strive to make life much easier for you and your family. Contact us, and let's see how we can work together!
Call us at (905) 597-4757 to schedule a no-obligation, in-home consultation. Learn more about the compassionate, quality senior care we deliver, every day, to families in Richmond Hill, Vaughan communities of Maple & Concord, Thornhill.