Financing for older women – the benefits of a reverse mortgage

The scoop on home income plans and reverse mortgages

You’ve spent years investing not only your time and money, but also your soul into your home. It was where you raised your children, the place where you laughed, cried, and carried on no matter what. So, now that you’re in your golden years, isn’t it about time your home invested in you? When it comes time to review your retirement plan, consider looking to your home for additional income and financial support through a reverse mortgage agreement. This unique home income plan is specially designed for mature individuals who are looking to take advantage of their home’s equity and value.

What is a home income plan?

A home income plan is a special financing method available to Canadian seniors. Based on a reverse mortgage, this type of financial set-up enables mature women to pull money from the equity of their home. Unlike a traditional mortgage that requires you to make regular payments to a lender, a reverse home mortgage pays you based on the value of your home. More and more women over the age of 60 are applying for this unique mortgage, and it’s easy to see why. A senior’s reverse mortgage allows elderly men and women to easily obtain cash for living and medical expenses, without having to completely sell their home.

Why women should consider a reverse mortgage

Reverse mortgages are specifically designed to help Canadian seniors avoid financial stress during their golden years. Some of the biggest benefits of initiating a home income plan include:

1. Avoiding interest payments

   Mature women and men who are qualified for a reverse mortgage have the option of making monthly interest payments on their reverse mortgage; however, many choose to delay this, preferring to pay outstanding charges once they sell their home.

2. Enjoying a tax-free income

   The money that you borrow as part of a home reverse mortgage is considered a tax-free source of income.

3. Flexible payments options

   A senior’s reverse mortgage is normally designed to be paid out in intervals over a set time period. However, you can opt to receive payment in one lump-sum, which can be very useful in the case of a medical emergency.

4. Financial stability

   The income that is generated from a senior’s reverse mortgage does not affect the Old-Age Security (OAS) or Guaranteed Income Supplement (GIS) benefits that you may already be receiving.

5. Maintaining ownership of your home and your independence

   Your home life will continue as is, with little or any disruption – except you’ll have more income to live it well.

What to expect from a reverse mortgage

Reverse home mortgages normally offer up to 40% of the value of your home. Of course, the amount you receive will vary depending on your unique situation. Mortgage qualification is based on:

• Your age and the age of your spouse (if applicable); both you and your spouse must be over the age of 60 in order to qualify
• The location of your home
• The home’s current appraised value
• The type of home you have

Reverse mortgages are a great option for mature women who are determined to continue to live an independent lifestyle. Contact a professional mortgage broker today to begin creating your unique home income plan.