What is a Reverse Mortgage?
Learn more about how senior homeowners in Canada can benefit from it
Adequate Retirement Income – A Major Concern for Canadian Seniors
Retirement is a significant transition and brings with it many challenges. If you are one of the thousands of seniors in Canada, aged 55 or older, it’s natural for you to worry whether your savings can adequately cover your expenses to maintain your lifestyle.
Other than health concerns, one of the biggest fears that keep seniors awake at night is money, or rather, not having enough of it. While most people nowadays plan adequately for their retirement, it’s not a given that their savings, their nest-egg, will be enough. Having anxiety over not having saved enough money to meet every day needs and long-term care expenses for later years is justified.
Despite many seniors continuing to work well past retirement age, meeting monthly expenses and keeping up with inflation is still a challenging task. The cost of living, especially energy and food expenses, have gone up considerably in the recent years. Given the reality of inflation, uncertain stock markets, and an increased cost of living, it’s safer to have a back-up plan in case you need some extra money to meet a health or family crisis. Senior homeowners can now generate more cash during retirement by taking out a reverse mortgage.
What is a reverse mortgage?
A Reverse Mortgage is a financial product that can supplement your retirement fund. It allows retirees to borrow money against the value of their home without having to sell the family house or uproot themselves. A financial solution available exclusively to Canadian homeowners 55 or older, it can generate extra income by converting part of the value of their home into cash.
Qualifying loan amount
The loan amount is based upon several factors such as the age of the homeowner and his or her spouse, the condition of the house, the location and type of home as well as the amount of secured debt.
There are no payments required with a CHIP Reverse Mortgage from HomEquity Bank. Payments only become due after all homeowners move, sell, or pass away. After the property is solid, all remaining equity after repaying the reverse mortgage is left to the homeowners or the estate.
CHIP Reverse Mortgages area sound financial solution to access the equity in your home during retirement. However, it is important to first understand the terms and conditions with this kind of financial product. Get your free guide today to learn more.