Reverse Mortgage scheme for Senior Citizens CanadaDespite initial euphoria over success of Reverse Mortgage, why the scheme has not picked up and gained acceptance? Is it because of high interest rate or because of reluctance to part with property ownership at late stage of life23 October 2014, Surrey BC: As the cost of living continues to rise, more and more senior citizens find themselves to be struggling to make a property for themselves.
Marjorie says, “Me and my husband have worked for all over lives. I wish we did a better retirement planning and had planned to be homeowners, while we were employed. We find ourselves in constant financial crunch and with a reverse mortgage we have only added to our troubles.”
Reverse mortgage is now a growing $20 billion industry. However, reverse mortgage and senior citizens who desire to be homeowners, do not seems to be a match made in heaven. Loan and law experts of TheDollarTimes.com suggest that you must weight the pros and the cons of the reverse mortgage before deciding to go with it. Carefully evaluate your requirements and your circumstances and explore other options that suit for you.
What is the first factor that you suggest to those who desire to take a reverse mortgage?
The first and the most important point is to steer clear of the scam artists who try to lurk you into a reverse mortgage to get hold of your money. Furthermore, you must explore you options well and it is never too late to do a bit of financial planning. A high-cost or a high interest loan is not the options that we would advice.
What else are the points to consider before deciding to go for a reverse mortgage?
Consider that you spouse is your legal hire and is more importantly a co-owner of the property. The reverse mortgage leaders do not expect you to pay the entire mortgage. They have to property as collateral in case you are no-more, the property is sold to recover the loan amount. If you have your children as your legal hires, can they pay off the remaining amount of loan to be the homeowners?
The repayment of the loan is triggers in case you deicide to move out. Usually duration of one year is considered as “moved–out”, including moving to a long term care facility. This is a particularly grim situation as your finances would already be tight.
Being a homeowner brings additional responsibilities such as payment of theproperty taxes, home insurance and regular maintenance, etc. Though you can get a bit extra when you initially take a mortgage, however, recurring expenses are a tricky situation and apart from considering the realities related to old age, you mist be particularly realistic about your financial stand. We advice you to set your retirement numbers before befriending the cons of a reverse mortgage.
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