A Reverse Mortgage is a program that allows retired Canadians, over the age of 55, to stay in place and to live a better life in retirement by improving their monthly cashflow utilizing the built-up equity in their home.  This product truly has the ability to change peoples’ lives, allowing them to age in place and retain their dignity.

If you are like most retired Canadians, your equity is in two places, your home and any savings you have accumulated during your working life.  There is a misconception that to access your home equity, you have to sell and move to a smaller home or condo, or a rental product.  But perhaps you feel strongly about wanting to live in your family home where have lived for many years, full of so many memories.

The advantage of this product is that you can have access to up to 55% of your home’s current value.  You can be paid out as a lump sum, or as a monthly income.  A lump sum could allow you to pay for repairs or renovations (maybe your roof needs replacing, or you need to make your home more accessible). Or you may want to use the money to improve your standard of living, maybe buy a new car, take a vacation, or pay off other debt.  The money is yours to do with as you please.

Your reverse mortgage product can be set up to be payment free or you can make interest-only payments, if you wish.  This is tax free money, and does not affect any other benefits you may be receiving.  It is not based on income; it is entirely based upon the value of your home. It comes due on death or the sale of your home.

In short, this mortgage product can have a profound effect on the standard of living for many seniors who are living on a low monthly income, or those who just want to enjoy a little more freedom in retirement.  To talk more about whether this product is right for you, reach out anytime for a no obligation conversation and review.