Is a Reverse Mortgage the Right Product for Me?
Matrix Mortgage Global – Is a Reverse Mortgage the Right Product for Me?
Many Canadians aged 55 and older take advantage of a financial product called a reverse mortgage in order to help them access equity in their home. They can receive cash out of their home equity either in a lump sum, in regular payments or in a combination of the two.
This type of loan is used for all kinds of reasons ranging from supplementing retirement income to making home renovations or even for planning the vacation of your dreams. The truth is, the money that you receive from a reverse mortgage may be used for any purpose you choose.
Perhaps you are wondering whether a reverse mortgage is right for you. Well, it depends.
A reverse mortgage can be an incredibly convenient way to get the money you need if you have built up equity in your home. You don’t need to have good credit to qualify and if you choose, you don’t even have to pay back the loan during your lifetime – you can let your estate do it instead after you pass.
Some people mistakenly think that a reverse mortgage means you are turning your home over to the bank, but this is simply not true. You still own your home. In some cases, however, it may be necessary for your family to sell your home after you pass in order to pay off the remaining balance on your reverse mortgage.
The obvious drawback, of course, is that by taking out a reverse mortgage you could have considerably less wealth left in your estate after you die to pass down to your beneficiaries.
How do I know if a reverse mortgage is right for me?
The best way to determine whether taking out a reverse mortgage is a good strategy for you is to sit down with your mortgage broker. They can walk you through the pros and cons of getting a reverse mortgage and they can also show you other borrowing strategies that may be more appropriate to your situation.
You may decide that it is better for you to refinance, get a home equity line of credit or perhaps even a traditional loan from a bank. Or you may also decide that a reverse mortgage really does make the most sense for you.
If you would like to learn more about reverse mortgages or any of the other mortgage products we offer, contact Matrix Mortgage Global today at 1-877-366-2961.
Get Reverse mortgage approved in 10 minutes: https://www.matrixmortgageglobal.ca/reverse-mortgage/