Your Freedom with Your Homes Equity & Reverse Mortgage

Is most of your net worth in your home? Have you got your home paid off or a lot of equity in your home? You must have heard of the reverse mortgage by now. This is a product banks are offering homeowners as an option to take equity out of their homes as a loan.

Two financial institutions offer reverse mortgages in Canada.

• Equitable Bank offers a reverse mortgage in some major urban centres.

• HomeEquity Bank and mortgage brokers offer the Canadian Home Income Plan (CHIP)

This reverse mortgage is a financial tool that helps homeowners pay themselves with the wealth of their homes’ equity. Living in your home with no mortgage payments and receiving an income from the equity in your home may be a solution for you. Understanding this tool and taking advantage of it will help you find an alternative way of finding extra income.

Interest rates on reverse mortgages may be higher than those on traditional mortgages or lines of credit. Although it does not cover taxes, and your insurance, it offers a tax free income and gives you financial flexibility. The title remains in your name, it doesn’t change, you have control of the home. If you choose to sell your home there would be a repayment of funds with the lender.

You may decide to get your reverse mortgage as a payment of:

• As needed basis

• Lump sum

• Specific terms, line of credit

• Tenure payment, or life annuity, for remainder of your life

This may be a good option for those who want to invest in property, or other investments if you are 55 or own your home. These loans are usually given to older homeowners, and seniors and there are fees associated with this product. Finding out if you are able to borrow will depend on your age, value of your home and your lender.

Advantages:

• Access cash to supplement your income

• Cash to travel, renovate your home etc.

• You don’t have to move out of your home

• Mortgage supports lifestyle, mortgage pays you

• No monthly repayment

• Guaranteed Income Supplement (GIS) and Old-Age Security (OAS) are not affected

• Seniors can live financially free in their home and find independence while living in a home they love.

Disadvantages:

• Less nest egg for retiring

• Using equity while alive, retiring, after pass inheritance for loved ones will be less

This may be the solution you are looking for, check out the opportunities out there, it may not be for everyone. If you are planning your financial future, speak to a Reverse Mortgage specialist or your financial planner to get the advice you need and find out what

Contact Hasan Farooqui 416.522.2334 to speak about more options you have with your home and future. Email hasan@hasanfarooqui.com and make sure to visit the website at https://www.hasanfarooqui.com/