Calgary Mortgage Brokers: Advice About Reverse Mortgages
Although by no means new to the financial markets as they have been available here in Canada for more than 20 years, reverse mortgages have recently gained significantly in popularity. A type of estate management vehicle designed for homeowners 60 years of age and older, reverse mortgages enable elder homeowners to convert the equity built up in their homes into cash, accessible as:
- A single lump sum payment
- A line of credit
- On-going monthly payments
By utilizing the services of one of the Calgary mortgage brokers in your area you can learn more about the positive benefits of reverse mortgages and receive unbiased advice and information to help determine if this is a type of innovative investment product is right for you.
How It Works
The popularity of today's reverse mortgages comes down to several factors that make them especially attractive to seniors who own their homes. For one thing, a home that was purchased decades ago at an extremely modest price compared to its current value can have a sizable amount of equity basically sitting in the home unused. Because you don't want to sell your house outright in order to access those equity funds, you may be forced to live within a restrictive budget during your retirement years because, just as the value of your house has gone up, the cost of everything else has skyrocketed as well. Not only does this mean your cost of living may be uncomfortably high for your retirement income to handle, it also means not being able to enjoy the active retirement you deserve.
Calgary Mortgage Brokers Can Offer Assistance
Calgary mortgage brokers serve many functions besides simply helping new homeowners secure the best financing options available. They may also be involved in the mortgage pre-approval process, refinancing existing loans, debt consolidation, commercial construction loans and, in this case, reverse mortgages. They are an excellent source of information if you would like to pursue the possibility, as a 60+-year old homeowner, of cashing in on your home's equity while still being able to live in the home as always.
The money you receive from a reverse mortgage payout can be used for whatever purposes you choose. While you will still be required to assume the costs relating to maintenance, taxes and homeowner's insurance you could, of course, put some of the funds toward these expenses. Other typical ways those who have taken out reverse mortgages have seen fit to use the money include:
- Take a trip around the country or around the world
- Pay off medical expenses
- Remodel your home or upgrade the landscaping
- Reinvesting
- Buying a new car, a new boat or whatever you want
With a reverse mortgage you can often receive cash in the amount of 40 to 50 percent of your home's current value, tax-free.
A qualified, reliable professional such as the Calgary mortgage brokers found at Mortgages by Candice can give you cost-free advice on obtaining the very best reverse mortgages available. Contact us today.