Reverse Mortgages Can Be Used For More Than You Think

Thousands of Canadians are using a reverse mortgage as a financial solution to help them bridge their retirement savings, but did you know just how versatile a reverse mortgage is?

Among the many reasons for reverse mortgage funds, HomeEquity Bank lists the most common reported use of funds. 

Health Care related– Many Canadian homeowners use reverse mortgage funds for some health care expenses, whether for personal support work or to simply pay off debt related to those expenses. 

Renovations/Retrofitting– Renovations or home retrofitting are common reasons for Canadians 55+ to apply for a reverse mortgage. Many 55+ homeowners need home renovations/home retrofitting due to wear and tear, leading to their standard of living being compromised or simply because of aging and mobility. 

Income Supplement– Did you know that the average annual expenses for Canadians 65+ is $60,000 yet their average income is only $40,000? Many 55+ clients use reverse mortgage funds to supplement their income. 

Unplanned Expenses – Sometimes planned retirement savings do not account for emergencies and that’s where a reverse mortgage can help.

Here are the biggest unexpected costs for retirement:

·       30% had unexpected emergency costs

·       30% needed to help family financially

·       24% needed to help finance health issues

A reverse mortgage continues to be a great financial solution to help you with your financial needs. 

If you would like more information about how a reverse mortgage can help you or someone you know, live a better retirement, please contact me today.