This example is about a single woman (Ms. C for short), aged 72, from a midsize city in central Ontario.
- Ms. C has been living in the old farm house, she grew up in, most of her life.
- Ms. C helped her children financially over the years, so when things got tight and her son offered to pay the property taxes, she welcomed the offer and was very grateful.
- The home she has grown to love and cherish as part of her family had begun to deteriorate. Ms. C decided to speak to her Mortgage Broker about getting a small amount for home renovations, as she wanted to renovate the kitchen and bathroom. She also wanted to have a little extra to supplement her income.
- To help her get some financial cushion, Ms. C’s Mortgage Broker suggested a reverse mortgage.
- To start the process of getting a reverse mortgage, Ms. C had to get a copy of her current property tax bill from the city. She was beyond shocked to discover her property taxes were in arrears and her property was going to be auctioned off.
- Ms. C was able to access the funds from the reverse mortgage quickly and pay off the taxes in time to save her beloved home. She was able to stay in her home, do the needed renovations and had some extra money left to supplement her income.
- With no regular payments required, Ms. C can now enjoy retirement in the home she grew up in.
Reverse mortgages are not just available for existing properties. They can also be used to purchase a home. We had another example of a couple that were looking to sell and move into retirement villa, close to their friends, but after they paid off their mortgage and other accumulated debts from the proceeds of the sale of their home, they were $100k short. They were able to secure a reverse mortgage to pay the balance without affecting their pension income or existing investments.
If you have any questions regarding reverse or any type of mortgage, please give our office a call and we would be happy to sit down with you and answer them. Contact us today to book your appointment.