Saving enough for your retirement in Canada can be a challenge. As the average life expectancy continues to rise, retirement savings are being stretched further over many more years. Today, many Canadians are looking for ways to supplement their income as they enjoy their golden years. All too often, retirees are not fully aware of all their financial options and consider downsizing and leaving the community that they love in order to make ends meet. There is a way to acquire the equity without having to move or sell your home. A CHIP Reverse Mortgage allows you to access up to 55% of the equity in your home as tax-free money. Not only are you able to retain ownership, but there are no monthly payments for as long as you live in the home.
“Unlike a traditional mortgage, with a reverse mortgage, you will not need to make any principal or interest payments until you or your spouse leave the home.”
What is a reverse mortgage? A reverse mortgage is a loan secured against the value of your home. It is designed exclusively for homeowners aged 55 years and older. It enables you to convert up to 55% of your home’s value into tax-free cash. What can you use the money for? The funds from a reverse mortgage can be used for whatever you desire. To cover monthly expenses, renovate your home, pay-off debt or travel – the choice is yours. When do you make payments? With a reverse mortgage, you maintain ownership of your home and there are no monthly payments required. Repayment of the loan is only required once you chose to move or sell. If you have been wondering if a reverse mortgage is the right decision for you, reach out to me.