A home is possibly the biggest purchase you will make in your lifetime. Usually making that last mortgage payment coincides closely with reaching retirement age. Home renovations, improving your lifestyle or one of life’s unexpected financial emergencies may have you considering a reverse mortgage to access the equity.
But is a reverse mortgage a good option for you?
There may be situations where a reverse mortgage is not recommended and should be given careful consideration. As a certified Reverse Mortgage Specialist, I will consider your overall picture as well as the reason for wanting to borrow. It is a big responsibility just the same as any time you borrow money and may be advised against the possible risk.
The amount you are able to borrow depends on your age, other assets, present income and if you can comfortably make the payments. It’s possible the home could depreciate in value or you may decide to downsize at some time in the future. The reason for contemplating a reverse mortgage might be to lend money to a child’s business, and the question arises of whether you should put their financial future at risk in this situation. Life is full of unknowns so you may be advised not to enter into a reverse mortgage depending on your circumstances.
Often it’s good to ask for someone else’s perspective and expertise when making financial decisions. Reverse mortgages are not always recommended and it’s best to consult a Toronto mortgage broker like myself so you have someone experienced to help make your decision.
