Introduction to Reverse Mortgages
One thousand people turn 65 in Canada every day and many of them would benefit from a reverse mortgage to help finance their retirement. A reverse mortgage has several important options and benefits that differ from other financial products. Seniors can use reverse mortgages to supplement their income and help finance the retirement of their dreams.
Home values have increased over the years and make up a significant portion of homeowners’ net worth. With a reverse mortgage from HomEquity Bank, Canadian seniors can get the money they need to finance their retirement and stay in their homes as long as they like.
A reverse mortgage acts as a way for seniors to access the equity in their homes without selling or moving. The loan functions similarly to a traditional home equity loan with one exception; so long as the homeowner lives on the premises, the payments on the principal and the interest are deferred and are settled when the homeowner no longer maintains residency in that home.
The criteria for eligibility includes:
- the age of the homeowners
- the type of property
- the home location, and
- the market value of the home.
A home valuation will be ordered at the time of the loan request to determine the current value and our lending practices ensure that you will never owe more than fair market value of the home.
Payment Options and Benefits of Reverse Mortgages
A variety of flexible payment options are available based on the unique needs and goals of the homeowners. Options include a lump sum payment, future installments, or a combination of both.
The funds acquired from your reverse mortgage can be applied to cover monthly expenses or assist family and loved ones, and enable you to maintain your lifestyle in the home you love.
Most seniors look forward to retirement – of being free from the working world and having the spare time to pursue hobbies and other activities you are passionate about. A reverse mortgage can provide the funds that many seniors otherwise wouldn’t have access to, allowing them the freedom to engage in post-retirement travel, hobbies and activities.
Call toll-free 1-877-421-2447 for your free, no obligation information guide from HomEquity Bank to find out more about all the ways a reverse mortgage can help you finance your retirement.