Purchasing your own home is a major financial commitment. So large in fact, that many Canadian homeowners may need to sacrifice and save for extended periods of time so as to make the transition. After many years of investing in your residence, isn't it time that your home invested in you? A home income plan from Family Lending could be just the solution you're looking for if you want to take advantage of the equity in your home.
What is a home income plan and how does it work?
A home income plan includes an unique type of mortgage, known as a home reverse mortgage Compared to a traditional mortgage that requires you to make regular payments to a lender, a home reverse mortgage pays you from the equity built into your home. Reverse mortgages are particularly devised for senior homeowners over the age of 60. A senior's reverse mortgage enables an elderly homeowner to acquire money for living expenses, without needing to sell the home. Check out our free reverse mortgage calculator to see just how much money your home could be paying you!
Benefits of a home reverse mortgage.
A home reverse mortgage differs from a conventional mortgage in many ways and includes a number of great benefits that are particularly designed to assist Canadian seniors make the most of their golden years. These perks include:
- Never needing to make interest payments. A holder of a senior's reverse mortgage has the option of making monthly interest payments, however most people decide to repay the mortgage when they sell their home.
- Tax-free cash payments. The money that you borrow as part of a home reverse mortgage is a tax-free source of income.
- Preserving ownership of your home.
- Flexible Income options. A seniors reverse home mortgage can be paid out in one lump-sum, or over scheduled periods in order to supply a regular income source.
Additionally, the income generated from a senior's reverse mortgage does not affect the Old-Age Security (OAS) or Guaranteed Income Supplement (GIS) benefits you may be receiving.
Home much money am I eligible for?
Home reverse mortgages normally offer up to 40% of the value of your home. The amount you receive from your reverse mortgage is based on:
- Your age and the age of your spouse (remember, both you and your spouse must be over the age of 55 to qualify for a reverse mortgage).
- The location of your home.
- The type of home you have.
- The home's current appraised value.
To find out home much you are eligible to receive as part of a seniors reverse mortgage contact Family Lending toll-free at 1-866-941-6678. You can also run some numbers using our free reverse mortgage calculator.