Unlocking Financial Options for Aging in Place: A Guide to Reverse Mortgages for Supporting Your Parents' Independence in Retirement

If your parents wish to age in place but you believe they don't have sufficient funds to cover the cost of such a choice, there is an alternative solution. Reverse mortgages can provide your parents with the means to help them regain their independence in retirement by accessing up to 55% of the value of their property in tax-free cash (thus no impact on Old Age Security or Guaranteed Income Supplement benefits). The funds obtained through a reverse mortgage can be used to consolidate debts, reduce monthly payments (with no monthly payments with a reverse mortgage), or increase liquidity.

 

A reverse mortgage is a type of loan designed for homeowners typically aged 55 and older. It allows you to borrow money against the equity in your home without having to sell it. Generally, you can borrow up to 55% of your home's current value.

 

It's important to note that the costs of a reverse mortgage can vary by lender. Other fees associated with a reverse mortgage may include home appraisal fees, registration fees, prepayment penalties if you repay your reverse mortgage before maturity, legal fees, and closing costs.

 

For more information, please contact us.

 

 

Source: Financial Consumer Agency of Canada