02 Aug, 2022
WHAT IS A REVERSE MORTGAGE? A reverse mortgage is a loan secured against the value of your home (just like a conventional mortgage), except with a reverse mortgage, payments are optional . If you choose not to make payments, the interest that accumulates is added to your mortgage balance (this will never exceed your home's value). This type of mortgage is available to homeowners above the age of 55, allowing you to access equity while staying in your home and community, without having to sell/downsize. You can opt for a lump sum to pay off debts, prepare for any large upcoming purchases/expenses, or simply give yourself a buffer for retirement. In addition, you can choose to take monthly advances to help supplement your retirement income. Interest will only accumulate on the funds advanced at that point in time. If you have an existing mortgage or home equity line of credit, this will be paid out from the reverse mortgage proceeds.