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Reverse Mortgages are More Popular than Ever

Reverse Mortgages are More Popular than Ever

 

Reverse mortgages canada

More Canadian seniors than ever before are turning to reverse mortgages to help them supplement their retirement income. The balance owing on reverse mortgages at the end of March of this year was $2.404 billion – that’s up 2.44% from the month prior and up 24.57% from the same time last year. The yearly growth represents Canada’s largest increase in the last seven years.

Part of the increase may be due to the fact that seniors are now representing a larger proportion of the population today than they did a few years ago and part of the increase is likely due to the fact that they see reverse mortgages as a convenient way to get the cash they need to live the lifestyle that they want in retirement.

What is a Reverse Mortgage?

If you are unfamiliar with what a reverse mortgage is, it is a loan which allows Canadians who are at least 55 years old to access the equity in their homes. Unlike other types of loans, however, you are not required to make regular payments on it. In fact, you do not have to pay it back at all as long as you are living in your home.  The drawback to this, of course, is that any money owing on the loan after you die must be paid back by your estate with interest – which can take a big bite out of your final estate.

Nevertheless, if you have been unable to save as much as you would have liked for retirement – or if you have a large expense that you would like to cover without going into your liquid assets such as your RRSPs or TFSA, reverse mortgages can be a good option.

Should You Get a Reverse Mortgage?

If you are exploring ways that you can access some extra money in your retirement years, you may be wondering if you should join the growing number of Canadians that are applying for reverse mortgages. This is a good question to discuss with your mortgage broker.

While this type of loan has helped many Canadians, it is not the best choice for everyone. Depending on your unique circumstances, there may be other lending options out there such as a second mortgage or refinancing that better suit your needs and goals.

Or, if a reverse mortgage does turn out to be the right choice, your mortgage broker can assist you with the application. For more information on reverse mortgages, contact the team at Matrix Mortgage Global at 1-800-429-0717.

 

Source: https://betterdwelling.com/reverse-mortgage-debt-resumes-climb-in-canada-after-a-brief-pause/

 

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