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  • Writer's pictureThe Ideal Team

Age in place with a reverse mortgage loan.

The family house is more than just a structure with four walls and a roof. The place is filled with memories-birthdays, first days at school, holidays, and joyful celebrations. You are investing in your family's future, and, for many, it will be their home for many years to come. As nearly two-thirds of a married couple's assets are related to the house, many seniors wonder how prosperous their retirement years will be. A reverse mortgage loan may be an option that deserves careful consideration as retirement needs increase and savings and Old Age Security benefits may not be sufficient to meet retirement needs comfortably and confidently. According to recent research concerning retirement planning, more than 83 percent of participants expressed a desire to remain in their current homes. However, less than half considered using home equity for retirement income. Reverse mortgages were only considered by 14 percent of respondents as a means of supplementing their income through their home equity.

A reverse mortgage can be used to pay for health care so that you can age at home. Reverse mortgages help older homeowners cover long-term care costs and remain in their homes as they age. In general, reverse mortgage loans are designed for homeowners at least 55 or older. In the case of a reverse mortgage loan, the homeowner is no longer required to make monthly mortgage payments as long as the home is their primary residence, and they continue to pay property taxes, homeowners' insurance, and home maintenance as required. A borrower may use the loan's proceeds to pay for medical expenses, in-home care, home repairs and remodelling, or settle other debts. In the past five years, the cost of in-home care, adult day care, assisted living, and skilled nursing care has increased by approximately three percent. Even though the cost of long-term care can be staggering, older Canadians may still be apprehensive about using a reverse mortgage loan to cover these costs. More seniors should give reverse mortgages a second thought. In recent years, reverse mortgages have undergone several changes. Consumers are better protected. A financial assessment is required for reverse mortgages. Over the years, reverse mortgage rates and fees have steadily decreased, resulting in a competitive lending environment. According to research, almost 80 million baby boomers are expected to retire over the next 18 years.

Canadians now hold nearly $6 trillion in untapped home equity, more than most other assets they have saved. The fact that Old Age Security benefits, workplace retirement plans, and personal savings are not always sufficient to support a retiree comfortably suggests that baby boomers may need to consider reverse mortgages as they approach retirement.

Many financial experts recommend reverse mortgage growing lines of credit as a standby source of funds for emergencies such as health issues. The reverse mortgage line of credit can also assist older Americans in avoiding the need to tap into other assets and investments when unexpected expenses arise. A homeowner may receive a lump sum, monthly payments, a line of credit, or a combination of these options. To ensure their assets are protected, prospective borrowers must attend financial counselling from a third party as part of the loan application process. They are also encouraged to consult with family members and trusted advisors.

It is common for families to want to age at home, where they will have family memories and will feel safe. Think about living in your own home and living a healthy, quality life until the age of 85-95 while paying for health care so that you can age at home. Having round-the-clock care at home can enable you to live longer. Consider investigating reverse mortgage loans if you own a home over 55. Many seniors live in homes they have owned for more than 35 years. Despite knowing they must make decisions regarding their future, they need help knowing where to begin.

To move or not to move? Is it possible to modify the home so they can remain in it for an extended period? Most homeowners still need to consider modifying their homes to enable them to remain at home as they age. This may result in your house being inaccessible, unsafe, or improperly maintained in the long run. It may seem that your only option is to move into a costly retirement community or assisted living facility.

You should not be confined to your home as you age. We get it. Living independently is the ultimate goal. Let's talk! Ideal Caregivers 4u will take the time to understand your unique needs and determine your best course of action.

Get Your Home Safety Assessment. We focus on fall prevention, accessibility, and simple modifications as part of our comprehensive home safety assessment. Live Safely & Independently In Your Home. Stay in a house that is safe, maintained, and holds equity. A comprehensive Home Safety Assessment can help deter debilitating fall injuries, which often trigger a challenge to age safely at home and the likely loss of independence. Our Senior Home Safety Assessment includes more than 250 points of evaluation across 75 areas of your home, both inside and outside. As part of our assessment, we will look for fall hazards, mobility issues, and accessibility improvements. Nancy Dahdah ~ founder of Ideal Caregivers 4u, a 5-star rated home care agency in Ottawa and a certified Senior Home Safety Specialist through AgeSafe Canada.

(613) -769-1669. Book your Senior Home Safety Assessment.

Meet Maya Kaaki!

Maya Kaaki watched her father build a successful mortgage business as a child. I was inspired by seeing my dad work so hard and be passionate about the industry," she says. "He always insisted that my brother and I do something we love and feel passionate about, and that's how I ended up in the mortgage industry."

She has been a mortgage agent since early 2019. Her top priority is keeping up with all the industry changes to best serve her clients and community. Maya was recognized with the Rising Star Award for mortgage sales in her first year as an agent.

She carries on her father's legacy as he retired to enjoy everyday pleasures with his family and knowing the mortgage industry is in good hands. Is a Reverse Mortgage right for you? A reverse mortgage is a loan secured by the value of your home. The program allows homeowners to convert 55% of their home's value into tax-free cash. The program is exclusively available to homeowners over the age of 55. The first question I'm asked when talking to clients interested in reverse mortgages is, "What happens to my house when I pass?" There is always a concern that the bank will take their house due to the nature of the loan. This is not the case. Upon death, the house belongs the whomever it's left to in the estate, and they can sell or refinance the property with NO penalties. ~ Maya Kaaki Accessing the funds in the loan is easy as ever. You get to decide how you want to receive the money - every month, quarterly, or all at once, so the homeowner can choose based on their needs. If you're receiving on a month-to-month or to do renovations or pay for a bill that's come up, that can be done with a straightforward phone call. There is absolute flexibility in accessing your funds which gives the homeowners freedom in their retirement not to be restricted by a set amount of funds.

The main difference between a reverse mortgage and a home equity line of credit is the payments. On a home equity line of credit, the homeowner has to factor in the minimum monthly payment based on the amount they've used, whereas with a reverse mortgage, there's no obligation to make any payments. You can make payments on the reverse mortgage as you see fit, and there are options for penalty-free lump sum payments, but they don't have to worry about missed payments or the impact on their credit if they don't make a monthly payment. Let's talk! Mortgage Forces Maya Kaaki, Mortgage Agent 1344 Youville Drive, Orleans ON K1C 7L1 Phone: (613) 301-2159

Ideal Caregivers 4u provides peace of mind and support for ageing loved ones. Families today find it challenging to provide their elderly parents with all of the support they need in the comforts of their homes or retirement homes.

"Improving the quality of life for our clients since 1998 while providing peace of mind to their families."

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