This is a realty for many people over the age of 55. Many people will go into retirement with a mortgage and some debt. Chip Reverse Mortgages are a way for some seniors to access the equity they’ve accumulated in their home as tax-free cash. This product has been offered in Canada since 1986 and is governed far better than it is in the USA. Some of the benefits are that it helps people stay in their home. There are no monthly payments required as long as the homeowner is living in the home. It can supplement monthly income instead of selling or downsizing. Homeowners keep all the equity remaining in the home after the loan is repaid. Eligible candidates can only take up to 50% of the homes value. People with blemished credit can even qualify! This product is not for everybody but it is a popular product in our aging society.
If you are over the age of 55 or have a family member that is and you think this might be a good option for them, give me a call to discuss.
Interesting Article from The Globe and Mail:
Will you die with a mortgage? 10 reasons why more people will