With reverse mortgages at record-low rates, you may want to consider such a vehicle if you’re 55 or older and looking for some extra cash to help with your retirement.
A reverse mortgage basically allows you to access 50% of your home’s equity up front – either in one lump sum, or in set payments over time. The perk is that you don’t have to make a single payment – interest or principle – while you or your spouse live in the home.
Right now Canada’s main reverse mortgage provider, CHIP, is offering a 5.5% 5-year rate – the lowest rate we’ve seen in years. The interest is tacked onto the mortgage amount you choose to borrow, and that’s due once you sell your home or, er, no longer live there.
Obviously, reverse mortgages aren’t for everyone – but they might be for you. Feel free to give me a call to discuss your particular situation and see if this product meets your needs.