Did you know that it is getting more difficult for seniors to stay at home? Or if they are still in their own homes, it is getting harder to keep it a comfortable haven during their retirement years?
Even if they own their home, making ends meet at the end of the month is becoming a challenge for some Canadian seniors. With the rising costs of basic goods and necessities, seniors who are depending on pension income streams may not be able to keep their home as comfortable as they want it to be with the costs of unexpected repairs, upgrades and even just maintenance issues.
With this brief article, I would like to share some of the challenges that our seniors face and a possible solution I can offer them as a Certified Reverse Mortgage Specialist.
Q: What is a CHIP Reverse Mortgage?
A: It is a loan secured against the value of your home. Instead of the monthly payments coming from your bank account they come from your equity. The money you receive is tax-free and yours to use as you wish.
Q: Who is eligible?
A: Canadian homeowners, the age of 55 and older, qualify. You must own your home and it must be your primary residence. There are no health or credit checks required.
Q: What can the funds be used for?
A: There are almost no conditions on how you can use the proceeds of a reverse mortgage:
- Improve your day-to-day standard of living
- Make improvements to your home
- Pay down debt
- Pay off medical bills
- Handle unexpected expenses
- Make a special trip or purchase
A: Major advantages of a reverse mortgage are:
Keep your home – Stay in your home and community and maintain complete ownership and control of your home for as long as you choose to stay.
No payments – With CHIP you never have to make regular payments until you no longer live in the home.
Relieve financial stress – You can use up to 55% of the equity in your home to pay off debts or handle unforeseen expenses. Your government benefits are not affected and the funds you receive are completely tax-free.
Q: How does it work?
A: A reverse mortgage lets you change your home equity into cash. Weigh the options and discuss with family and advisors what payment plan would work best for you. Receive your money and gain the freedom to optimize your overall financial situation.
(❚ Sharon Francisco is an Accredited Mortgage Professional at Verico One Link Mortgage & Financial, committed to helping our readers find options to achieve financial goals. For a free, no obligation consultation to discuss your mortgage options, please call 204-930-7708 or email at firstname.lastname@example.org.)