As of 2022, there are over 1.9 million divorced people between the ages of 55 and 89 in Canada.
Commonly known as “grey divorce”, this phenomenon is defined as a divorce over the age of 55. Staying in a loved home is a priority for many of these individuals. However, they may not have the necessary funds on hand for the acquisition.
If you don’t have the means to create new wealth, or if the lack of employment income makes borrowing difficult, you may be tempted to invest in retirement savings and investments to cover the cost of buying a home. However, there may be another solution.
For those looking to finance the purchase of the couple’s home, a reverse mortgage may be the answer. A reverse mortgage helps you use the equity you’ve built up in your home to buy out half of your spouse’s home.
With a reverse mortgage, you can take up to 55% of your home’s value and turn it into tax-free cash. Plus, there are no monthly mortgage payments.
There are many other ways to reverse mortgage, including:
• Health care: 91% of Canadians say they want to live in their home for as long as possible after retirement. If you are one of these Canadian girlfriends, you can take advantage of a reverse mortgage to continue living comfortably in your home or community.
• Refurbishment/Modification: Many clients use reverse mortgage proceeds for renovations and renovations.
• Income assistance: Like many other Canadians, you may worry that your income will decrease when you retire and you will not be able to maintain the same standard of living. However, a reverse mortgage allows you to increase your cash flow without requiring monthly payments, making retirement the way you want it to be financially safe.
• Unplanned expenses: You may have the perfect retirement plan built to provide you with financial security. is. Emergencies related to damage to your home or unforeseen health issues can always occur and their costs may not be considered in your retirement plan. A reverse mortgage should provide access to your home’s property value and provide tax-free cash to cover unplanned expenses.
• Early inheritance: Many clients use reverse mortgage funds to provide early inheritances to their families. With the cash you receive from your reverse mortgage, you can now support your loved ones and give them an early inheritance to help with the down payment on your home.
• Debt Consolidation: One of the most common uses of reverse mortgage funds is debt consolidation. You can use the tax-free funds you earn by accessing home equity to pay off all your debts and live a peaceful retirement.
Big life events like divorce and retirement are hard. Don’t hesitate to contact me about how a reverse mortgage can make some of the tough times a little easier.
This article was written by or on behalf of an outsourced columnist and does not necessarily reflect Castanet’s views.