There are a wide variety of retirement options available. One particular option that is available to seniors is the Reverse Mortgage in BC. All applicants for this type of a mortgage are required to be at least 60 years of age. If you are married, you must both be at least 60 years of age in order to qualify. Although many do, not all financial institutions offer this type of mortgage for BC seniors.
The usefulness of a Reverse Mortgage in BC is that it is secured by the equity you have already built up on your home. So instead of taking out a loan when you money for a certain purpose, you simply tap into the equity that already exists in your home. The equity is defined as that portion of your home's value that is not secured by any type of debt.
Another advantage to using a Reverse Mortgage in BC is that you will not need to make any regular payments on your mortgage. Because this loan is unique, you will be simply borrowing from the amount of equity that you have in your home. That amount, minus any interest that must be paid as part of the reverse mortgage, is the amount of money that you can borrow.
Although you do not need to make regular payments, or even a payment in a lump sum when you have a Reverse Mortgage in BC, you will need to make payments if you no longer list the home as your principal location of residence. In addition, you will also need to begin to make payments if you sell your home as well.
Another attractive advantage to this type of mortgage is that the money that you receive from this mortgage will have no effect on money that you already receive from Guaranteed Income Supplement (GIS) or from Old Age Security (OAS). This gives you even greater financial freedom without the fear that you could lose some of your valuable funding that is obtained from other sources. You can use the money from this type of mortgage for whatever you want or need to use it for.
