Amansad Financial helps connect clients with lenders who provide reverse mortgages in Canada. We serve Edmonton, Calgary, Red Deer, and all major cities and towns within Alberta. Rural areas also considered.
Many of the clients that we serve throughout Alberta have entered their retirement years with a house that they own free and clear but with retirement savings that are not quite adequate for their needs. Some clients pick up a part-time job in order to augment their fixed income, but there are some others who do not want to re-enter the work force or have conditions that make that an impossibility.
There was a time when people viewed reverse mortgages as a bad thing — as a draining of their legacy, so they would struggle to fit their lifestyles within small fixed income amounts, leaving their home equity intact so that the house could pass down to their children. In many cases, though, the children would just sell the house after inheriting it. For many retirees who had worked so hard for most of their lives, it seems a shame that they have to spend their retirement lacking more than the most basic comforts.
Reverse mortgage can help seniors enjoy retirement
This is where a reverse mortgage can help seniors enjoy their golden years. We have connections with lenders in through Alberta and many other provinces across Canada, who provide reverse mortgages on generous terms for seniors. The good news is that you don’t have to qualify on the basis of income (because most retirees do not have a full-time job) or credit score. Instead, you qualify on the basis of your age, the age of your spouse, and the equity that you have built up in your home. As long as you or your spouse (after one of you passes first) lives in that house, it stays in your family.
What exactly is a reverse mortgage?
When you talk to a lender, you’ll generally gain approval for a loan up to 55% of the equity of your home. So if you have a home that has an appraisal value of $500,000, and you have the home paid in full, you can receive up to $275,000 in loan approval. You can take this out all at once, or you can take it out in monthly, quarterly or annual increments to help you manage your budget. If you still have $100,000 on the mortgage balance, you could still get the reverse mortgage, but you would only get $175,000 in available proceeds, as the first $100,000 would go to satisfy that original mortgage. If you wanted to roll in other debts with this process, you can do that as well, but that would reduce your payout.
Over time, you don’t have to pay a dime as long as you are in the house. Interest does build over time, so those who can will often make payments on the interest so that the debt does not have as large an impact on the estate. However, most lenders guarantee that if the heirs choose to sell the house, or if the owners move out and sell the house while they are still alive, they will not owe more than the proceeds. If the heirs want to use other funds from the estate to pay the mortgage and interest balance, they don’t even have to sell the house.
Are you curious about whether reverse mortgage in Alberta is the right solution for you? Talk to one of our reverse mortgage specialists, and we will go over your current situation and recommend the best way to improve your liquidity in your retirement years.