feature
Do you qualify for a reverse mortgage? Is it right for you?
First, what is a reverse mortage? According to the Canadian Home Income Plan (CHIP, a chartered bank) website, “A reverse mortgage is secured by the equity in your home. Unlike a traditional mortgage in which you make regular payments to someone else, a reverse mortgage pays you.”
Here are 10 questions to ask yourself before considering a reverse mortgage. If several of these apply to you, a reverse mortgage may be just what you need.
-
Are you and your spouse 55 or older?
-
Do you have significant equity in your home?
-
Will using the equity in your home create a financial burden for you heirs, upon your death?
-
Are you open to consulting with a mortgage broker, accountant, financial advisor and a lawyer?
-
Is staying in your home and maintaining your lifestyle important to you?
-
Do you need money for retirement?
-
Is enjoying your retirement, while you have health and ability to do so, important?
-
Do you want to travel and enjoy your ‘golden years’?
-
Do you need money to cover expenses of catastrophic illness?
-
Do you want to invest to increase your monthly cash flow?
