“Reverse mortgages” is one of the ways of borrowing money for people of over 62 years of age. There are still some confusions exist about the concept of reverse mortgages as some say that they are highly beneficial, while some others say that they are highly risky. A Canadian Reverse Mortgage usually meant for people especially of older age who are mostly asset-rich but have poor-ready cash. Speaking about older people most of them would be pensioners who might have their home paid-off to receive a lump of money form the lender. For most of these people who are above the age of 62, their home must be the only asset they hold and yet they can’t borrow to get financial assistance from any lenders just because most of the senior citizen cannot afford a monthly payment against the balance.
Here comes the use of “Reverse mortgages”. The concept of reverse is quite different where once you have the cash in hand; you are free to do what you desire. The principal amount remains the same while the interest tap is switched on at a rate of about 10%. There is no necessary to make any payments for the money you borrow, as long as you are alive and haven’t sold your house. But once the particular person sells the house or dies naturally out of old age then the principal and the accumulated interest must be paid back from the profits gained by selling the house.
The positive features of Reverse Mortgages Canada is that the senior people are given full rights to enjoy their feeble stage in their own home. Often, those older people must have gone through very tough times and should have done many sacrifices to build a home on their own to rise up their family. But it is very pathetic if they can’t afford to pay their bills despite being free from mortgages. For such people, reverse mortgages would be a perfect option to go because the usual pension amount they receive covers their basic expenses alone and not their miscellaneous things. The financial assistance through reverse mortgages can give them ready cash in hand offering financial flexibility and enormous possibilities to fulfill their retirement dreams. The flexibility of never having to make monthly payments is why reverse mortgages are such an attractive option for thousands of Canadian homeowners. With the help of reverse mortgages, you can retain life time ownership of your home. Since reverse mortgages are tax free, you can be stress free and there is no necessary of loan repayments as long as you live in your own sweet home.