Older, mortgage-free homeowners looking for ways to come up with extra cash might want to consider the benefits of a reverse mortgage.
You’ve worked hard, your house is now yours free and clear and you have some dreams that you’d like to start to fulfill. The professionals at Northwood Mortgage™ will sit with you to chat about how you can get some tax-free money out of your home for whatever you desire. You keep your home!
You should know that to qualify for a reverse mortgage in Canada, you have to be 60 years of age or older. A conventional mortgage or loan requires that you make regular payments, but a reverse mortgage doesn’t. With a reverse mortgage, interest accumulates and equity decreases and if you ever do decide to sell your home, the loan and anything accrued gets paid back then.
Eventually you’ll owe more than you borrowed, since interest is being added to your balance. But a reverse mortgage allows you to choose how you receive your money. Do you want it all at once or perhaps spread over time? It’s up to you. Also, if you’d like to pay back the interest and principal entirely, pay the interest month-to-month or on an annual basis, that’s your decision, too.
Considering the positives and the not-so-positives of a reverse mortgage will help you make an informed choice about whether this is the right type of loan for you.
A Northwood Mortgage professional will be happy to sit down with you to explain all the details of a reverse mortgage and suggest a plan that’s best for you. Call them today.
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