As the aging demographic in Canada increases, it has become much more apparent that the fruits of their labor are what is carrying the economy. While their assets are flattening because of the COVID 19 pandemic, there are ways to increase the funds that you have on hand. One of them is a reverse mortgage. The reverse mortgage allows for tax free payments, and the payments can even be deferred until the owner doesn’t live in the home full time.
- One of the biggest negative impacts of COVID-19 is that many older people are losing their savings due to the poor economy.
- A reverse mortgage can help unlock equity while keeping the tax burden exactly the same which is why it’s valuable to homeowners.
- When you do a reverse mortgage, payments are deferring until the owner doesn’t live there full time.
“Their options, however, are limited. Most Canadians 55-plus don’t have the opportunity to drive income by working more. Credit cards or lines of credit are of little help for those on fixed incomes”