The challenges that 55+ Canadians are having today and how they are and will continue to look at a reverse mortgage as a solution whether it's investment losses, shrinking cash flow, or financially supporting their loved ones, many Canadians require a financial solution for their precise situation. Luckily, Mortgage Consultant can offer certain options.
Below are just some of the ways a reverse mortgage can be a solution for those feeling the financial impact of COVID-19.
1. Help borrower preserve their investments
Our clients have spent years building their investment portfolios. However, with the economy taking a serious hit, these are likely to decrease in value. Instead of selling their assets, clients may benefit from a CHIP reverse mortgage, tapping into their home equity and not their investments. Plus, these clients will have the flexibility to withdraw funds as a lump sum or in monthly installments and all tax free.
2. Help your clients get the cash flow they need
With many Canadians struggling to pay their bills, cash flow is a very real concern. But traditional solutions such as credit cards and lines of credit may not be an ideal option for retirees, since monthly payments merely increase pressure on finances. A reverse mortgage, on the other hand, provides clients with cash that requires no monthly repayments - the ultimate deferral plan. No Negative Equity Guarantee, borrowers never owe more than the fair market value of their home.
3. Help borrowers to support their loved ones
Many 55+ Canadians are concerned about the financial struggles of their loved ones and may wish to help. And while making a withdrawal from retirement savings or selling assets can trigger capital gains or withdrawal tax, a reverse mortgage allows clients to release up to 55% of the value of their home, 100% tax free.
If you know any 55+ home owners living through challenging times, there has never been a better time to contact a Mortgage Consultant.