How a Reverse Mortgage Can Help with Property Emergencies
Property emergencies can come in all shapes and sizes. Whether it’s a plumbing issue, time for a new roof, or getting your home up to current code, these scenarios can all cost a pretty penny. You may not be keen to dip into your savings, but what other options do you have? A reverse mortgage is a unique way to offer homeowners a financial cushion to aid in unexpected property emergencies. Let’s take a look at this type of loan in more detail, and how it can help cover various costs associated with your property:
What is a Reverse Mortgage?
Reverse mortgages are loans that help homeowners access the equity in their homes without having to move or sell. Unlike a traditional mortgage, there are no required monthly payments, and the approval process is slightly more straightforward. You can borrow up to 55% of your home’s current value in a lump sum or installments, and the money doesn’t need to be paid back until you sell your home, move out, or after the borrower passes away.
Who is Eligible?
To be eligible for a reverse mortgage, you must be at least 55 years old, and own your home. The maximum amount of money you can borrow from your equity is dependent on your age, the appraised value of your home, and your home’s location. HomeEquity Bank and Equitable Bank are the only mortgage providers in Canada who offer reverse mortgages, so consider working with an informed reverse mortgage broker to choose the option that’s right for you.
What Emergencies Can a Reverse Mortgage Help With?
A reverse mortgage can be an ideal choice for individuals needing assistance with their property finances. One of the primary advantages of a reverse mortgage is that, once approved, you can collect the money in a lump sum, or installments—and you don’t have to take the full approval amount if you don’t need it. The money gained from a reverse mortgage can be used for various expenses, including:
Renovations or Maintenance on Your Property
Emergency renovations could include water damage, foundation issues, structural instability, or electrical problems. Ensuring these repairs are completed is essential to keep your home in good condition so you can continue to enjoy it for years to come.
Aesthetic renovations are also within your reach with a reverse mortgage. Have you been itching to remodel your kitchen? Maybe you’re desperate to liven up your bathroom flooring? With the money from this type of loan, you can update your home to your heart’s content.
Property Taxes
Depending on the location of your property, yearly taxes may increase over time. While this expense could have been within reach of your budget before, surges in these fees can be difficult to account for, especially if you are on a fixed income. With the money from a reverse mortgage, you can pay property taxes with ease and avoid unnecessary interest accumulation.
Household Expenses
Household expenses such as gas, electricity, and water are vital to living in a safe and pleasant environment. The equipment to keep these utilities running can require replacement overtime, which tends to be costly. Whether you need a new hot water tank, are considering getting central air installed, or want to make the switch to natural gas, your reverse mortgage loan can help you stay on top of these bills and maintain a comfortable lifestyle.
Seniors’ Lending Centre Can Help
Reverse mortgages open a realm of possibilities for homeowners navigating their way through their golden years. This loan can help you feel more financially secure and stable, and add to your overall peace of mind. At Seniors’ Lending Centre, we can help you decide if a reverse mortgage is right for you. Contact us today to get started.
