What are the Advantages of a Reverse Mortgage?

What are the Advantages of a Reverse Mortgage?

If you are a retiree who is looking to supplement your income, then perhaps you have thought about getting a reverse mortgage. Well meaning friends and family members may have warned you against this type of product because quite frankly, reverse mortgages have gotten a bad rap in the past. But better regulations have made reserve mortgages a good option for some people and the only way to really know if a reverse mortgage is the right choice for you, is to sit down with your mortgage broker.

So what are the advantages of a reverse mortgage? Here are three of the most important.

It can supplement your retirement income. Unfortunately, not everyone has a guaranteed pension, and more commonly Canadians are becoming unable to save enough in their RRSP to give them the lifestyle that they would like to have in retirement. A reverse mortgage can give you the added income to pursue hobbies, travel or just life a more comfortable lifestyle without having to rely on government assistance or help from family.

It can eliminate debt payments. Do you want to go into retirement with a lot of debt? For most people, the answer to that question is a resounding no. If you are approaching retirement or if you are already in retirement and want to get rid of that pesky debt along with all the interest payments that are just going into someone else’s pockets, then a reverse mortgage can be a good strategy to do that.

It can help extend your retirement savings. A common worry that many people have when they retire is that they will run out of money before they die and not have enough to live on in their final years. This is especially true for those with longevity in their families. Perhaps you have been retired for awhile now and you’re noticing that your assets have declined faster than you thought they would. If this is the case, and you are looking for ways to preserve some of those savings for a longer time, then a reverse mortgage might be worth considering.

As stated earlier however, the best way to determine whether a reverse mortgage is the right choice for you is to sit down with a professional mortgage broker. Reverse mortgages are only one of many tools that can be used to help you in retirement, and a good mortgage broker will show you all of your options.

If you would like to make an appointment to speak with one of our mortgage professionals, then contact Matrix Mortgage Global today.

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