With the money you receive, you can pay off debts, do home renovations, travel, or achieve a more comfortable life. You have years of mortgage payments in the rear-view mirror, so now you can enjoy your wealth in the here and now.
Here are some ways our clients have used the funds from a reverse mortgage:
- Paid off all debts including their HELOC or mortgage, especially when payments were not manageable at today’s renewal rates.
- Structured a tax-free monthly income for a more comfortable and enriching life.
- Renovated for lifestyle or changing needs.
- Paid for healthcare expenses.
- Took a bucket-list trip with the family.
- Bought a cottage for making memories.
- Started a new business.
- Took a lump sum to help both partners get a fresh start after a divorce.
- Used the funds as a bridge until a planned inheritance is received.
- Helped a child/grandchild buy a first home, or with tuition or wedding expenses.
A primary benefit is that you stay in your home as it continues to appreciate while making no payments until you sell. The monthly income and/or lump sum withdrawal you receive is tax-free, which means your government benefits won’t be clawed back. It’s a great option if you don’t want to sell any investments at a loss.
As an experienced Toronto, GTA & Brampton Mortgage Broker, I can help you understand the intricacies of reverse mortgages so that you can make an informed decision. I offer personalized services tailored to your unique circumstances and am committed to helping my clients achieve financial freedom.
If you want to see what a monthly income stream could look like or see what kind of lump sum you might access, contact Rakhi Madan today to learn more about reverse mortgage options – no obligation.
Now let’s get out there and make the most of this day, this week, this month, and this year!
Q: What is a reverse mortgage?
A: A reverse mortgage is a type of mortgage that allows homeowners who are over the age of 55 and have significant equity in their homes to convert that equity into tax-free cash. It works like a mortgage in reverse; instead of making payments, you receive payments.
Q: How does a reverse mortgage work?
A: With a reverse mortgage, homeowners can retain ownership of their homes while receiving cash payments. The amount of money a homeowner can receive depends on their age, property value, and equity in the home. The loan only must be repaid when the homeowner passes away, sells the home, or moves out of the home permanently.
Q: Who is eligible for a reverse mortgage?
A: To be eligible for a reverse mortgage, homeowners must be aged 55 or over and have significant equity in their homes. The home must also be their principal residence.
Q: How can a reverse mortgage benefit me?
A: A reverse mortgage can benefit homeowners by providing them with financial flexibility and freedom without having to sell their homes. The tax-free lump sum or regular payments received through a reverse mortgage can be used to pay bills, complete home renovations, travel, or achieve a more comfortable and fulfilling life.
