There’s a chance you read the title to this article and thought “I’m a long way off from retirement”, and that’s totally okay! Chances are you know someone (maybe parents or relatives) who could use this information, so feel free to pass it along.
If you find yourself in the position where you’re thinking about retirement and what options you have with your mortgage, you’ve come to the right place. As an independent mortgage agent, I 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 and more Canadians are carrying mortgage debt into retirement. How well they can manage this large debt truly depends on the options they have.
Let me outline some usual options heading into retirement:
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 to enhance their lifestyle in which they’ve worked their whole life towards.
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 options are best suited for your unique details, don’t hesitate to contact me directly. Together, we can assess your financial situation, put together a mortgage plan, and then see that plan through it’s maturity if it truly makes financial sense.