• Risk Free Ways Seniors Can Take Advantage Of Their Homes’ Equity

  • As more and more Canadians move on into retirement, more and more of us are faced with unexpected financial worries. Yes, seniors and retirees are often free of many of the financial difficulties and obligations associated with their earlier working lives. Everything from longer life-spans, increases in the Canadian cost of living and unexpected family and medical problems can leave seniors just as worried about their futures financially, as they were when they were younger.

    Ideally many Canadians look to fall back on the equity in their home as financial buffer of sorts. There is however, another solution. In fact, due to recent new mortgage initiatives designed specifically with senior home owners in mind, it is possible to access up to 55% of the overall equity in your home without having to forfeit your home ownership rights.

    Furthermore, for those seniors on a tight budget, who not only still have a mortgage to pay but also medical bills or outstanding debts, they can turn to a reverse mortgage as the solution! As long as you live in the home, you will never have to pay back any money on the loan. You only pay back the principal + interest upon the death of yourself and your spouse and/or if you move or sell the house.

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    The CHIP Reverse Mortgage From Equity Bank

    Sound to good to be true? A Chip reverse mortgage works by converting up to 55% of your home’s value into cash accessible equity. Equity, which you can use for whatever purpose you might need it for, such as debt repayment, renovations, travel, investing etc.

    Most importantly though, being able to access this equity doesn’t come at the expense of you surrendering your home ownership rights, or you being tied into any kind of equity repayment agreement.

    The goal of the Chip reverse mortgage is quite simply to assist Canadian homeowners enjoy more fulfilling retirements. Moreover, to make things even easier, qualification for a Chip reverse mortgage isn’t dependent on homeowners submitting to either credit or medical checks. The best part though? Income from reverse mortgage payments is considered tax -free, which means that any amount of you access will not affect any benefits (Old Age Security, CPP, Pension, etc) you presently receive.

    Popular Misconceptions About Reverse Mortgages

    Of course, the question still remains, who will actually repay the equity you borrow and when exactly will they be liable to do so?

    Equity, which you borrow from your home can be paid back at any time at very competitive rates of interest. This makes reverse mortgage options ideal for seniors who just need short term financial relief.

    Even if you don’t choose to pay your equity back in your lifetime though, it’s important to note that not only can the amount you borrow never exceed your property’s value, but that appreciating home values can help compensate for the interest which you stand to accrue on any amount borrowed and secure that you will have equity left over when you decide to repay the loan.

    Another positive feature is that if you decide to invest the proceeds of the Reverse Mortgage into an investment, the interest earned is then tax deductible!

    Are you looking for a risk free way to take advantage of your home’s equity? As an independent mortgage agent, I can discuss with you the potential benefits of reverse mortgage whist focusing on your specific financial situation. My name is Amina Mohamed, and for a free, no obligation initial consultation, you can contact me today by clicking here.