Reverse mortgages are a way for a retiree to borrow against the equity in their home.
Reverse mortgages can be an advantageous way to increase your monthly cash flow during your retirement years. If you spent your life paying off your home or have managed to at least reduce the mortgage on it significantly, you can go from paying a mortgage payment each month to having a lender pay you each month instead. There are many factors to consider when deciding if this type of mortgage is right for you, and when you reach out to us at Centum Mortgage Store, Ltd., we will make certain you understand what is involved so you can make an informed decision.
A situation in which reverse mortgages are ideal is when a retiree is having trouble covering a mortgage payment or needs more income each month to meet expenses. Basically, with reverse mortgages, you are borrowing against the equity in your home during your retirement years, so the loan on it grows larger instead of decreasing. You can still leave your home to your heirs, but they will need to pay off the mortgage balance, refinance it to keep the home, or pay it off from the proceeds if they choose to sell the house instead. Your heirs will not have to come up with any shortfalls if the home isn’t worth the balance of the mortgage, and it won’t affect their credit score.
With our access to more than 20 lenders, including some that offer reverse mortgages, we can guide you through obtaining the best terms for your home in Kelowna or the surrounding Okanagan area of British Columbia. If you are of retirement age and have substantial equity in your home, give us a call to investigate whether this is something that makes sense for your situation.