FREE YOURSELF FROM FINANCIAL WORRY

Five Reasons Your Kids May Recommend a Reverse Mortgage

IF YOU’RE OVER 55,

own your home and want to stay in it, but need financial assistance, you may be considering a reverse mortgage. It’s a loan that allows you to convert some of your home equity into cash you can use. But, like any financial plan, getting a reverse mortgage is a major decision. You may be strug- gling to make up your mind.

You needn’t be alone. For one thing, just to be approved for a reverse mortgage, you’re required to consult with an independent lawyer. You can also speak with your financial advisor.

But if you have adult children, why not bring them into the conversation as well? Your kids can share a different perspective, offer insights, give advice – and, above all, lend their support.

Find a time when you can sit down together without interruption and talk over your options. Don’t be surprised if, after a chat with your children, they encourage you to go ahead and apply for a reverse mortgage. Here’s why your kids may believe this is the right solution for you.

They know how much your home means.

Your home is familiar and comfortable, and holds years of memories. It’s no wonder it’s so important to you and your children. There are also practical reasons to stay home: You’re accustomed to your neighbourhood, and you can keep your independence. Perhaps your home is close to your kids or grandkids, or friends. Maybe there’s even a chance one of your children needs to move back in. According to the Federation of Canadian Municipalities, 93 percent of seniors want to stay in their own homes. Even if they eventually need care, they want to be looked after in their homes.

Your children want you to be free from money worries.

It doesn’t seem fair to carry financial stress into your golden years, but unfortunately it’s common. Almost half of us are in debt after retirement. A quarter of people over 75 are still paying off a mortgage. Some homeowners may be reluctant to tap into the value of their homes, even if it means paying off debts, because they’re determined to leave a large inheritance for their children. But is that really what your kids want? According to a 2014 survey commissioned by HomEquity Bank, 94% of Canadians who are getting an inheritance would willingly give up half of it, if it meant a quality