You may have read the title to this article and thought “I’m a long way off from retirement”, and that’s okay. Chances are, however, that you know someone (maybe parents or relatives) who could use this information; feel free to pass it along.
But if you find yourself thinking about retirement and what options you have with your mortgage, you’ve come to the right place. As independent mortgage brokers, we can provide you with many more options than a traditional bank. You might be closer to retirement than you think, and a good mortgage can certainly help you along the way.
Although it’s ideal to have your mortgage paid off by the time you retire, in today’s economy, that isn’t always possible. More Canadians are carrying mortgage debt into retirement; how well they do it relies on the options they have!
Let’s outline 3 options you have:
Standard mortgage financing
If you’ve got a steady income, decent credit, and equity in your home, there is no reason you shouldn’t qualify for standard mortgage financing, which usually comes at the lowest interest rates and best terms. Even if you’ve already retired, some lenders use pension and retirement income to support your mortgage application.
Reverse mortgage financing
A reverse mortgage allows Canadian homeowners 55 years and older to borrow money from their home with no proof of income, no credit check, and no health questions. A reverse mortgage is a fabulous mortgage solution that has helped thousands of older Canadians enhance their lifestyle.
Home equity line of credit (HELOC)
A line of credit secured to the equity you have in your home is an excellent tool to allow you to access money when you need it, but not pay interest if you don’t. A lot of Canadians like the idea of rolling all their expenses and income into one account.
To figure out which option is best suited to you, contact us today. Together, we can assess your financial situation, put together a mortgage plan, and see it through.