While a reverse mortgage has been historically thought of as a program for cash strapped seniors needing cash from their home, improvements over the years have made it a great soultion for seniors looking to purchase real estate, or assist family, yet maximize cash flow for retirement. Since there are no payments to make, and the approved amount is based on age, clients can qualify for much more than they would with traditional products.
-70 year old clients sell $700,000 home in Surrey, and clear $325,000 after paying off mortgage, debts, and fees.
-They wanted to free up cash flow, so moved to Abbotsford where they were hoping to buy something for $300,000.
-After looking at many places, they discovered they were going to need to spend about $500,000 to get what they really wanted, but having no mortgage payment was very important to them, plus they only has OAS and CPP for income and counldn’t qualify for a $200,000 mortgage.
-Their broker and realtor knew about reverse mortgages, and suggested this as a way for them to buy the $500,000 home. They were approved for $195,000.
-They put down $305,000, had enough to cover closing costs, and still had some left over. They were able to buy their final home, exactly as they wanted, and they have zero mortgage payment to make for as long as 1 of them lives there.
Call me today to learn more about Reverse Mortgages.