Today, it is becoming increasingly more common for Canadian seniors to find themselves close to retirement with little to nothing in the bank. It is hard to pull through tough economic times with enough savings to look forward to a rewarding retirement, but that doesn’t mean it isn’t possible!

If you are a Canadian homeowner, Cashin Mortgages is here to help you use the financial benefits of a reverse mortgage in your favor.

To put it simply, a reverse mortgage is basically a mortgage, in reverse. To purchase a home using a normal mortgage, borrowers are required to make monthly payments to a lender. These payments are used to pay down the principal balance of the mortgage. In the case of a reverse mortgage, instead of the borrower paying the lender, the lender makes monthly payments to the homeowner.

Over time, homeowners build up equity in their homes. It is this equity that can be used to draw these monthly payments from, allowing a homeowner to take out a reverse mortgage.

To qualify for a reverse mortgage, you must own your home and be at least 55 years of age. If you meet these basic requirements, you may qualify to get up to half of the value of your home in the form of monthly reverse mortgage payments.

Managing your finances and planning for your future can be a difficult task if you are struggling to make ends meet with a current income that is far below where you need it to be. Reverse mortgages can provide great benefits and a sense of relief to senior homeowners as a source of supplemental income. The funds from a reverse mortgage could also be used to pay taxes, repair or update your home, which many people find hard to do when they enter retirement.

Many people are under the impression that reverse mortgages sound too good to be true, but they really aren’t. Reverse mortgages are a great tool that allows senior Canadians to live comfortably while retaining the title and possession of their family home.

Just like any other mortgage, reverse mortgages do have to be paid back eventually, but the great news is that no payments are needed to be made until the home is sold or the homeowner passes away. If you remain in the home until you pass away, the responsibility of paying off your mortgage will then be passed to your children. They may choose to do this by selling the home but will be given the opportunity to pay fair market value to take over ownership.

There are some additional requirements, such as keeping up with home maintenance, insurance, and property taxes as well as fees associated with the reverse mortgage process.

Contact the experts at Cashin Mortgages today to go over your reverse mortgage options and find out how you can look forward to enjoying your retirement.