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Seniors and Reverse Mortgages

Wed, 08 Aug by Pauline Relkey

A reverse mortgage is a loan that allows you to get money from your home equity without having to sell your home. You may be able to borrow up to 55% of the current value of your home tax-free.

Eligibility for a reverse mortgage
To be eligible for a reverse mortgage, you must be:
a homeowner
at least 55 years old. If you have a spouse, both of you must be at least 55 years old to be eligible.

Qualifying for a reverse mortgage
Your lender will consider:
your home equity
where you live
your age
your home’s appraised value
current interest rates

In general, the older you are and the more home equity you have when you apply for a reverse mortgage, the bigger your loan will be.

Accessing money with a reverse mortgage
You may choose to get the money from your loan through:
lump-sum payment
planned advances, giving you a regular income
a combination of both of these options
You must first pay off any outstanding loans that are secured by the equity in your home with the funds you get from your reverse mortgage.
You can use the remainder of the loan for anything you wish, such as:
pay for home improvements
add to your retirement income
cover healthcare expenses

Repaying the money you borrow with a reverse mortgage
You don’t need to make any regular payments on a reverse mortgage. You have the option to repay the principal and interest in full at any time.
Interest will be charged until the loan is paid off in full. The interest will be added to the original loan amount, which increases the loan amount over time.
If you sell your house or if you move out, you’ll have to make payments. When you die, your estate will have to repay the loan.

Costs to get a reverse mortgage
Costs associated with a reverse mortgage may include:
higher interest rate than for a traditional mortgage
a home appraisal fee
a closing fee
a prepayment penalty if you sell your house or move out within 3 years of getting a reverse mortgage
fees for independent legal advice
Shop around and explore your options before getting a reverse mortgage.

Compare the costs and impact of the following:
getting another type of loan, such as a line of credit or credit card, etc
selling your home
buying a smaller home
renting another home or apartment
moving into assisted living, or other alternative housing

Where to get a reverse mortgage
Two financial institutions offer reverse mortgages in Canada:
HomEquity Bank offers the Canadian Home Income Plan (CHIP). It is available across Canada directly from HomEquity Bank or through mortgage brokers
Equitable Bank offers the PATH Home Plan. It is available through mortgage brokers in Alberta, British Columbia and Ontario
Your financial institution may offer other products that might meet your needs.

Pros and cons of a reverse mortgage
Before you decide to get a reverse mortgage, make sure you consider the pros and cons carefully.
Pros
You don’t have to make any regular loan payments
You may turn some of the value of your home into cash, without having to sell it
The money you borrow is a tax-free source of income
This income does not affect the Old-Age Security (OAS) or Guaranteed Income Supplement (GIS) benefits you may be getting
You still own your home
You can decide how to get the funds

Cons
Interest rates are higher than most other types of mortgages
The equity you hold in your home may go down as the interest on your loan adds up throughout the years
Your estate will have to repay the loan and interest in full within a set period of time when you die
The time needed to settle an estate can often be longer than the time allowed to repay a reverse mortgage
There may be less money in your estate to leave to your children or other beneficiaries
Costs associated with a reverse mortgage are usually quite high compared to a regular mortgage

Questions to ask a lender about reverse mortgages
Before getting a reverse mortgage, ask your lender about:
the fees
any penalties if you sell your home within a certain period of time
how much time will you or your estate have to pay off the loan’s balance if you move or die
what happens if it takes your estate longer than the stated time period to fully repay the loan when you die
what happens if the amount of the loan ends up being higher than your home’s value when it’s time to pay the loan back

Myth: The bank owns the home.
Fact: The homeowner always maintains title ownership and control of their home and they have the freedom to decide when and if they’d like to move or sell.

Myth: The bank can force the homeowner to sell or foreclose at any time.
Fact: A reverse mortgage is a lifetime product and as long as property taxes and insurance are in good standing, the property remains in good condition, and the homeowner is living in the home, the loan won’t be called even if the house decreases in value. Reverse mortgages provide peace-of-mind that the homeowner can stay in their home as long as they’d like.

Myth: Surviving spouses are stuck paying the loan after the homeowner passes away.
Fact: Surviving spouses can choose to remain in the home without having to make a payment unless they choose to sell the home.

Myth: The homeowner cannot get a reverse mortgage if they have an existing mortgage.
Fact: Many people use a reverse mortgage to pay off their existing mortgage and debts, freeing up cash flow for other things.

Myth: A reverse mortgage is a solution of last resort.
Fact: Many financial professionals recommend a reverse mortgage because it’s a great way to provide financial flexibility. Since it’s tax-free money, it allows retirement savings to last longer.

Home is where the heart is, but it’s getting more difficult for seniors to stay in their homes.
93% of Canadian Seniors live at home and prefer to age in place.
60% of retired Canadians say staying in their home is critical to their quality of life.
700,000 Canadian senior-led households face a housing affordability challenge.
Canadian seniors who live alone at home experience poverty at nearly twice the rate of other seniors.
1 in 4 Canadian senior-led households are spending more than 30% of their income on housing.
Only 1/3 of the Canadian workforce is covered by a registered pension plan down from 37% in 1992.
Almost 30% of Canadians who are nearing retirement have $50,000 or less in savings.
35% of those nearing retirement plan to use the value of their home to generate retirement income.
Nearly 70% of Canadians nearing retirement are still carrying debt.

THE TAKEAWAY
Most seniors prefer to live their retirement years at home but live on modest incomes and may face challenges to their financial security. Canadian seniors do benefit from access to CPP, OAS and housing assets but are feeling the pinch.

WD40 – the answer to so much

Thu, 02 Aug by Pauline Relkey

Here Are 20 Little-Known Ways That WD-40 Can Change A Person’s Life

1. Polishing silver: If you have a collection of silver that always seems to be tarnishing over time, WD-40 can definitely help you out with that. Spray down your silver and wipe it clean. It’s just that easy to keep it looking sparkly and new! 

2. Cleaning shoes: When it comes to sneakers, WD-40 is a person’s absolute best friend. In the winter, you can remove stubborn rock salt spots that build up by spraying them and wiping them down. If you want to make your whole shoe waterproof, spray the entire surface with the stuff. 

3. Protecting bird feeders: While having a bird feeder in your yard is a great way to keep beautiful birds in plain view, squirrels are notorious for stealing seeds from them. To keep these critters away, spray down the center pole with WD-40 and the squirrels will slide right off. (Is this how they make those funny videos of squirrels twirling and slipping and sliding around like crazy?)

4. Cleaning toilets: Depending on the type of water in your house, cleaning your toilet can feel like a pointless task. If you use WD-40 the same way you would use your regular toilet bowl cleaner, you’ll notice that it gets clean quickly and stays clean longer.  Remember this blue color??? 

5. Unsticking gum: Chewing gum is delicious and a great way to keep hunger at bay—but when it doesn’t make it to the actual trash can, it can get stuck on shoes and other surfaces and never come off. If you need to banish hard, chewed-up gum, go ahead and spray it down with WD-40. That will help it come right off!
6. Removing crayon marks: Do you have kids or grandchildren who love to take their crayons and scribble on walls and even on furniture? Don’t break your back trying to remove the marks! Instead, lightly spray them with WD-40 and they should rub right off.
7. Defrosting ice: Whether you live in a cold climate year-round or you’re gearing up for the winter season, spray your windows down with WD-40 and then wipe the excess away. Believe it or not, this will keep the ice from sticking to your windows and save you time getting out of the driveway in the morning. 
8. Removing water stains: It’s so frustrating that the same shower you step into to get clean tends to collect a crazy amount of water stains. If you want to get rid of them fast, follow up your usual cleaning routine with a spritz of WD-40 and watch the water stains disappear.
9. Polishing scissors: If you use scissors in the kitchen or crafting regularly, then you know just how sticky they can get over time. If you want to keep that stickiness at bay, polish them regularly with a healthy dose of WD-40 and they’ll be just perfect. Use this on tools also. 
10. Removing stickers and price tags: If you have ever tried to peel off a sticker on a window or a bumper sticker on your car, you know what a hassle it can be. Using WD-40 makes it a breeze. Just coat the sticker and gently peel it away! 
11. Unsticking zippers: Is there anything more frustrating than having a zipper on your backpack or your favorite coat get totally and absolutely stuck in place? Here’s good news: if you spray WD-40 on the zippers and gently work them back and forth, they’ll slide right back into place! 
12. Removing tea and coffee stains: If you or a house guest have ever spilled a little coffee or tea on a table in your home, you know how hard it can be to ever get it out again. Thankfully, combining your regular cleaning routine with a squirt of WD-40 will banish it in no time. 
13. Banishing tar stains: If your car gets covered in tar, then it’s definitely time to break out the WD-40. Just spray down the surfaces and even the most stubborn patches should melt away like hot butter! How great is that? 
14. Taking off rings: If you wear a ring regularly then you probably know what it’s like when it gets stuck on your finger. It happens to everyone at some time or another. Don’t panic! The easiest way to remove it is to cover your finger with WD-40 and then slide it off. It works like magic! 
15. Remove lipstick: Lipstick is always a fun way to make your look for the day pop. Unfortunately, it’s less fun when it transfers onto other items of clothing and settles in to stain. Luckily for you, WD-40 as a pre-wash stain treatment will help remove that lipstick in no time flat. 
16. Helps Open Rusty Locks: If you’ve got a rusty key or a keyhole that won’t cooperate, apply some WD-40 and you should be able to gain easy entry. 
17. Extends the Life of Shower Heads: This is another little-known household use for WD-40. Shower heads have a tendency to break down over time, but applying WD-40 can extend their life span by years.
18. Removes Mildew From Refrigerator Gasket: We’ve all seen it before: Disgusting gunk builds up on your refrigerator gasket. Well, WD-40 will remove this. Simply apply, let it sit for a few minutes, wipe off, and you’re done.
19. Filters Dust When Sprayed on Air Conditioning Filter: Spray a light coating of WD-40 on your AC filter before installing, and your filter becomes exponentially more effective. I tried this method, and it did seem like I was breathing cleaner air in my home. Later, when I went to change out a filter that I had sprayed with WD-40, it seemed to have filtered a great deal more dust than normal.
20. Quiets Squeaky doors: whether it’s your front door or kitchen cupboard door, spraying a little WD-40 on the hinges will quiet things down. 

The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the Association of Regina REALTORS® Inc.. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.