A good friend recently quoted their grandmother, “I didn’t plan on living this long, I may run out of money!” Fortunately this person was joking, but at 93 years old there was truth to this statement and it struck a chord with me.

The average Canadian has not saved enough for retirement. Not even close. With inflation and debt levels on the rise, it makes sense that every generation is falling short of their retirement goals. In fact, most retirees are cash poor but maybe, just maybe, have built up a nice nest egg of equity in their home. Most likely, the majority of your net worth is in your home itself. It makes sense that reverse mortgages are the fastest growing mortgage product in Canada, exceeding $6B Nationwide to date.

We now have 3 fantastic providers of reverse mortgages in Canada, all offer a no-negative-equity guarantee on your home. This means you will never owe more than the fair market value of your home in case of a downturn in the housing market. Each provider offers a slightly different product, it is my job to steer you towards the best one for your unique situation. We have access to all of them.

Whether you are looking to pay off debts, pay for at-home-care, help a loved one with an early inheritance or gifted down payment, do some renovations, or simply want to enjoy your retirement, please reach out and see how these products have transformed into viable tools for a better lifestyle.

Reverse mortgages at-a-glance – What are they?

– Allows the borrower to tap into a portion of their equity as tax free payments or lump sums
– Borrower qualification is primarily based on your homes’ value, the location of your home and your age on a sliding scale
– You maintain ownership of the home, the lender does not take title
– Available to Canadian citizens 55 years or older on your primary residence
– No payments – Don’t think traditional mortgage, think “reverse”
– No need to sell your home to fund your retirement, continue living in it
– Minimal income verification, but spend the money how you want
– Main rules: Maintain your property, insure your property and pay your property taxes

There are some downsides to reverse mortgages and they are certainly not for everybody. It is best to understand the cons as much as you can get caught up in the pros. There are many other options to consider, this is only meant to be one of those considerations.

Reach out if you want to discuss your eligibility for this tool in more detail and how it can help you or a loved one live a more fulfilling, dignified retirement.

Casey Struck
www.struckmortgages.com
casey@ratefair.ca