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Reverse Mortgage helps to enable retirees to plan their retirement well
Reverse Mortgage helps to enable retirees to plan their retirement well
Reverse mortgage enables retired Canadians to enjoy their retired life, by tapping their equity in their homess
Victoria,
BC,
United States of America
(prbd.net)
02/12/2010
Studies indicate that about 13% of the population in Canada consists of seniors. This figure is expected to double in the next 25 years. While retirement is generally viewed as a second life by many, where seniors get to enjoy their life they’ve dreamed about in their hard working years, not everyone is prepared to afford a lifestyle they imagine.
As Canada’s 10 million baby boomers plan to hit the retirement button at 60, reverse mortgages have become very popular. In fact HomEquity Bank, Canada’s only national reverse mortgage provider estimates that around $1billion loans are planned to be disbursed during the fourth quarter.
“Reverse Mortgage allows people the financial freedom to do things that they’ve wanted to do all their life. Homeowners can convert their equity into cash, without having to sell it or pay the debt until a future pre-set time in the future. Foreseeing a huge demand for reverse mortgages as a result of a burgeoning population of seniors, banks have now reduced interest rates. For example, the rate on a CHIP Home income plan reverse mortgage has now dropped to 3.75% from 4.95 %,” says Mr. Robert Williams of Unlock Equity (http://www.unlockequity.ca), a site that aims to educate seniors about the ‘ins and outs’ of Canadian reverse mortgage.
“To be eligible for a reverse mortgage loan, the applicant should be atleast 62 years of age and live in their home. You are also required to have an equity on your home, based on which the loan amount may be disbursed. The amount also depends on the age of the applicant. Generally higher the age, higher is the amount to be disbursed. The equity (http://www.unlockequity.ca) in the home reduces as the borrower is given more and more money. The amount is then paid in full as a lump sum amount,” he adds.
Mr. Robert Williams however adds a note of caution saying “Reverse mortgages in Canada aren’t the perfect solution for every senior looking for resources. These loans are great for seniors who don’t have msedical or other needs and are in need of a lump sum amount of cash. These are also great for seniors without kids or with children who are well off. But for those seniors with children looking to expect inheritance, this isn’t a great idea. Besides unlike conventional mortgage the debt increases with the equity going down.
To know more about reverse mortgage and to know about the details and procedures on how to apply and what are the eligible condition to be fulfilled for reverse mortgage, visit, http://www.unlockequity.ca/
About
UnlockEquity.ca is an information portal and "Broker Match" service that connects Canadian homeowners (60+) with experienced mortgage professionals who specialize in the Reverse Mortgage product range.
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