Mortgage Options for Older Canadians
Zach Silverman | Mar 27, 2024
As Canadians approach retirement, the goal of paying off their mortgage before retirement may seem increasingly challenging due to the rising cost of living. However, with strategic mortgage planning, older Canadians can still secure favorable financing options to support their retirement years. At Silverman Mortgage Group, we understand the unique needs of retirees and offer tailored solutions to optimize their mortgage choices.
When considering mortgage options for retirement, working with an independent mortgage professional like Silverman Mortgage Group provides significant advantages. Unlike traditional banks, we offer a diverse range of mortgage products from various lenders, ensuring our clients have access to the best rates and terms available in the market.
Here are some mortgage options available to older Canadians as they plan for financing through retirement:
Standard Mortgage Financing
With a stable income, good credit, and home equity, older Canadians can qualify for standard mortgage financing. Our team at Silverman Mortgage Group assists retirees in leveraging their pension and retirement income to support their mortgage applications, even after retirement, securing the lowest interest rates and favorable terms.
Reverse Mortgage Financing
Designed specifically for homeowners aged 55 and older, reverse mortgages offer a unique solution to access home equity without income verification, credit checks, or health inquiries. Silverman Mortgage Group guides older Canadians through the intricacies of reverse mortgages, helping them enhance their lifestyle and financial security in retirement.
Home Equity Line of Credit (HELOC)
For retirees seeking flexibility in accessing funds, a HELOC secured against home equity can be an excellent option. At Silverman Mortgage Group, we help older Canadians set up HELOCs to access funds when needed while minimizing interest payments, consolidating expenses and income into one convenient account.
Private Financing
In certain circumstances where traditional financing is not viable, private financing offers an alternative solution. While private financing may come with higher interest rates, it provides options where traditional banks may not. Silverman Mortgage Group assists retirees in exploring private financing options tailored to their unique needs and financial goals.
If you're a retiree exploring mortgage financing options or have questions about planning for retirement, Silverman Mortgage Group is here to help. Our experienced team is dedicated to providing personalized guidance and support, ensuring older Canadians make informed decisions to secure their financial future. Connect with us today to explore your mortgage options for retirement.
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Chances are if the title of this article piqued your interest enough to get you here, your family is probably growing. Congratulations! If you’ve thought now is the time to find a new property to accommodate your growing family, but you’re unsure how your parental leave will impact your ability to get a mortgage, you’ve come to the right place! Here’s how it works. When you work with an independent mortgage professional, it won’t be a problem to qualify your income on a mortgage application while on parental leave, as long as you have documentation proving that you have guaranteed employment when you return to work. A word of caution, if you walk into your local bank to look for a mortgage and you disclose that you’re currently collecting parental leave, there’s a chance they’ll only allow you to use that income to qualify. This reduction in income isn’t ideal because at 55% of your previous income up to $595/week, you won’t be eligible to borrow as much, limiting your options. The advantage of working with an independent mortgage professional is choice. You have a choice between lenders and mortgage products, including lenders who use 100% of your return-to-work income. To qualify, you’ll need an employment letter from your current employer that states the following: Your employer’s name preferably on the company letterhead Your position Your initial start date to ensure you’ve passed any probationary period Your scheduled return to work date Your guaranteed salary For a lender to feel confident about your ability to cover your mortgage payments, they want to see that you have a position waiting for you once your parental leave is over. You might also be required to provide a history of your income for the past couple of years, but that is typical of mortgage financing. Whether you intend to return to work after your parental leave is over or not, once the mortgage is in place, what you decide to do is entirely up to you. Mortgage qualification requires only that you have a position waiting for you. If you have any questions about this or anything else mortgage-related, please connect anytime. It would be a pleasure to work with you.
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