Reverse mortgage debt: Introduction
The number of Canadians who aren’t able to retire comfortably is alarming. Let’s face it, Old Age Security (OAS) and Canada Pension Plan (CPP) is just not enough, and seniors are in search of ways to supplement the government programs. Some are going back to work full time, part-time, consulting, selling their homes or borrowing against their homes with reverse mortgage debt.
According to the Office of the Superintendent of Financial Institutions (OSFI), reverse mortgages experienced double-digit growth in October 2017. And, they’re gaining in popularity.
Reverse mortgage debt: What is a reverse mortgage?
Aptly named, a reverse mortgage is a mortgage in reverse. It allows you to borrow against the equity in your home and you don’t have to repay the debt until you sell or transfer your home. . For some people, a reverse mortgage to pay off debt, may be attractive.
Reverse mortgage debt: Is a reverse mortgage a good idea?
There are pros and cons to a reverse mortgage and every situation is different. We’ve written a blog explaining if a senior reverse mortgage is a good or bad idea to fund your retirement.
Reverse mortgage debt: How fast is reverse mortgage debt in Canada rising?
According to OSFI filings reverse mortgages held at banks:
- Increased by 2.02% in just one month from September 2017 to October 2017
- Increased 22.27% in one year from October 2016 to October 2017
- Is estimated to be rising at $1.25/second
Reverse mortgage debt: Are you struggling with debt?
With more seniors struggling in retirement, using their homes for equity is gaining in popularity and as a result reverse mortgage debt could be the fastest growing segment of debt in the country. The keyword here is debt.
If you’re struggling with debt, let’s sit down and discuss other options before resorting to a reverse mortgage. A professional trustee is an expert in debt and is in the best position to give you sound advice on how to deal with your financial struggles.
Call Ira Smith Trustee & Receiver today to book a no cost, no obligation appointment and you can be on your way to conquering debt Starting Over, Starting Now.