Reverse Mortgages Are Becoming More Mainstream
Matrix Mortgage Global – Reverse Mortgages Are Becoming More Mainstream
It used to be that Reverse Mortgages were considered a last resort for pensioners who were desperate to make ends meet. This, however, is no longer the case. Home values have risen considerably in recent years, so it is making more and more sense for older Canadians to cash in on some of the equity in their homes in order to live a more comfortable retirement lifestyle.
First introduced in Canada in 1986, reverse mortgages provided Canadians aged 55 and older a way to access the equity in their homes while still be able to maintain ownership of their home. Today, the reverse mortgage is a mainstream option for those who wish to have greater control over their financial security.
Like any mortgage or financial product, reverse mortgages have both advantages and disadvantages. One disadvantage is that it could potentially reduce the amount of inheritance left in the estate after the person passes away. Another risk is that if you start using the equity in your home too early, it could mean that you won’t have sufficient funds left when you are older and when you could potentially need the money even more for things such as medical or long-term care.
Given the potential risks involved in reverse mortgages, it is always best to work with a qualified mortgage advisor who can help you determine both whether it is the right product for you and if it is, how and when to start withdrawing from your equity so that you will have sufficient funds for as long as you require them.
That being said, however, there are many good reasons why a reverse mortgage might be the right choice for you. If you have been unable to build up a sufficient while you were working, then a reverse mortgage can supplement your retirement income.
Or if you need a larger one-time cash infusion to help you pay for things such as medical expenses, renovations or even to invest in your retirement business, then a reverse mortgage can be a good way to access the cash that you have built up in your home.
If you are considering a reverse mortgage, it is important that you understand both the benefits and the risks. To learn more about this product as well as possible alternatives, contact Matrix Mortgage Global today. One of our agents will be happy to help you make the right choice for your situation. call us at 1-800-429-0717