While living with debt can be tough at any age, living with overwhelming debt in your retirement years, without a steady income stream can be even tougher. A financial solution, such as a debt consolidation mortgage may help you roll all your high-interest debts into a single debt with manageable, lower interest payments.
Thousands of Canadians are using a reverse mortgage as part of their retirement solution. Purpose-built for Canadians 55+, reverse mortgages allow homeowners to turn some of their home’s equity into tax-free cash.
However, amid the economic uncertainty, banks are re-evaluating their HELOC policies, and considering amendments to their line of credit programs. In order to understand the reasons behind these revisions, let’s take a closer look at how things stand today. As early as mid-April 2020, one bank has already changed some rules for borrowers around using HELOCs as down payments on investment properties, while another bank has stopped accepting new HELOC applications temporarily.
A recent report in the Financial Post suggested that applying for a HELOC may become much more difficult after the current crisis. Many people experiencing financial difficulty are currently getting by thanks to government crisis stimulus and mortgage/loan deferrals. If those stop before everyone is back at work, many people could start considering HELOC options to stay afloat.
If you have seen the Hollywood movie “Confessions of a Shopaholic”, the process of debt consolidation will make a lot of sense to you. When you are in deep with credit card debt, paying the minimum monthly amount due only lets you scrape through from one installment to another.
Many Canadians often ask, “Can you use a reverse mortgage to purchase a home?” It often surprises people when they find out that, yes, you can buy a house with a reverse mortgage, by using it as a type of purchase mortgage.
This article explores these myths and reveals the real truth about reverse mortgages
Before deciding on whether to take out a reverse mortgage, it pays to be armed with all the facts
As Canadian homeowners, you may be familiar with the many advantages of a reverse mortgage.