Between inflation and regular cost of living increases, times are tight for many people. And if you are living on a fixed income, you are probably feeling the pinch even more.
While there are a number of financial tools available, reverse mortgages have become a popular solution for homeowners in their retirement years to help free up some of the capital they have spent so long paying into.
“As people are approaching retirement, they are often asking several questions: How do I plan to finance my retirement? How many years do I need to finance? How much income do I need per year?” says Andre Deleo, President and Principal Broker with Morgix. “Once you start to ask yourself these seemingly simple questions, the answers can often seem vague, scary, and might even keep you up at night. In fact, many retirees find that they must make up an annual $10,000 gap in their income, which poses unique short and long-term problems.”
He continues, “However, the solution may be closer than you think. You have already done an amazing job building equity in your home and now a reverse mortgages gives you the opportunity to use that equity to finance a portion of your retirement without having to sell your home.”
Understanding Reverse Mortgages
A reverse mortgage is a financial product that is designed to allow homeowners to borrow against the equity in their home. Unlike traditional mortgages, where borrowers make monthly payments to the lender, reverse mortgages provide homeowners with monthly income by tapping into the value they've built up in their homes over the years. This financial arrangement allows folks to enhance their cash flow without having to sell.
“Many Canadians have used the CHIP Reverse Mortgage to access up to 55% of the equity in their homes, tax-free and without any regular monthly payments. This allows them to manage the rising cost of living more comfortably while still enjoying their homes,” says Andre.
Is a Reverse Mortgage Right for You?
Reverse mortgages are designed for seniors and are therefore only available to homeowners who are over 55 years old. There must also be enough equity built up in the home to make it worth the effort.
“I understand that making any large financial decision requires a lot of thought and conversations with those closest to you. I have found that involving your family early on often leads to a better outcome,” says Andre. “To help this conversation along, I have plenty of resources about reverse mortgages that I will be happy to share with you and your family. Please feel free to email me or give me a call anytime, and I’ll be happy to help you achieve the lifestyle you deserve!”
To learn more about reverse mortgages or other financial solutions, call Morgix at 1-844-466-7449 or visit them online to make an appointment.