If your retirement plan included selling your home to cash out and downsize over the last 15 months, then you likely realized an exceptionally good return on your investment.
However, if you love your home, your neighbours, and the community you live in, and don’t want to move somewhere else, what do you do? How can you access your equity without having to sell? That’s where reverse mortgages can come in handy.
The 65+ community is the fastest growing cohort in the market right now. Since the onset of Covid-19, many are shying away from selling and moving into a senior’s home and are choosing to stay in their homes for as long as possible. Many are house rich but cash poor and lack the sufficient funds for retirement especially if they live longer than anticipated. Retires want to travel and many are looking to help a child with the ever-increasing cost of purchasing a home.
There are two primary companies that provide reverse mortgages in Canada, Equitable Bank and Home Equity Bank.
If you are 55+ and own a home in a major urban area in an approved province like Ontario, then you can access a certain percentage of the equity in your home. There are no monthly payments, and you continue to own your home. You can choose to pay it back on your own schedule or wait until you sell.
For further details on how the program works, click on the links below:
Home Equity Bank
If you still have questions, let me know, I have access to several good Mortgage Brokers that I can refer you to.