Source: Sault Star —
Have you ever viewed a reverse mortgage commercial and wondered whether it would help you maintain and enhance your retirement lifestyle?
One of my clients certainly did. They knew they didn’t have quite enough money and they didn’t want to scale back their lifestyle, work more or sell their home. As a result of seeing the commercial, we ended up modelling a few comparisons:
- Continue living in their home using a reverse mortgage versus selling their home at a future date and renting an apartment;
- Providing a blend of taxable and non-taxable income using a reverse mortgage versus all taxable income from a registered retirement income fund (RRIF);
- Delaying Canada Pension Plan (CPP) benefits until age 70 using a reverse mortgage versus using a RRIF to bridge the income gap between age 65 to 70;
- And, paying off a mortgage with a reverse mortgage versus keeping the mortgage.