What are the mortgage options for retirees ?

In my experience as an independent mortgage broker, I've encountered many retirees who turn to reverse mortgages as a solution for accessing extra cash. However, some retirees are still comfortable making mortgage payments and should know about other possibilities. Most major banks might not be able to come up with a solutions. We have access to more products, some that can be added now, that wont start accruing interest until used.

Take Sandra and Mike, for example. They own a property free and clear and have $800,000 saved in form of GICS and High Saving Accounts with their bank. Their desire to purchase a new home before selling their current one led them to seek financial solutions. Despite their long-standing relationship with their bank of 47 years, they were disappointed to find that their institution couldn't offer them any viable options.

As their mortgage broker, I was able to present Sandra and Mike with various alternatives. Because they had significant investments, we explored options that wouldn't require them to withdraw funds and incur capital gains taxes. This opened possibilities beyond the typical solutions like private financing or resorting to a reverse mortgage.

One such alternative involved adding a mortgage product that only incurred interest when used onto their property, which would provide access to funds without monthly repayment obligations or accumulating interest until the funds were utilized. By diversifying their options in this way, Sandra and Mike were able to avoid limiting themselves and found a solution that aligned with their retirement plans.

For individuals with fewer liquid assets available, it's crucial to take proactive steps to secure their financial future before their income declines. By consulting with us at Arc Mortgage, we can assist in setting up suitable products on their property well before retirement. This proactive approach ensures that they have access to necessary funds without being constrained by limited income during retirement. If you're approaching retirement, it's crucial to consider all your options and consult with professionals who can tailor solutions to your specific needs and circumstances.