Senior Financing Strategies

Buying an Annuity

A study from Sun, Triest, and Webb (2007) concluded that “taking a reverse mortgage in the form of a lifetime income, either at retirement or when financial wealth is exhausted, is preferable to taking a lump sum at age 65.” They continue, “…An alternative to [Read more]

Minimize Government Benefits Clawbacks

Reverse mortgages are not just for people low on cash. They can also be useful for retirees who want to minimize the government’s clawback of their Old Age Security (OAS) or other benefits. Reverse mortgages are a type of loan. That means their proceeds are [Read more]

Reverse Mortgages for Down Payments

Reverse mortgage proceeds can be used for: A child or grandchild’s down payment Down payment on an investment property Down payment on a cottage Down payment on a foreign vacation home A gift to your child or grandchild The uses are endless. In some cases, [Read more]

Write Off the Interest

In certain specific cases, borrowing via a reverse mortgage, mortgage or HELOC and buy income-producing investments may make sense. That’s because the tax you pay on that investment income may be offset by the interest expense. This can considerably reduce your effective borrowing costs and [Read more]

Save Interest with a HELOC

A reverse mortgage is great for those who want a source of cash with no payments, no hassle and little risk. But since reverse mortgage lenders don’t recoup their investment for years (until you sell or leave your home), they charge higher interest rates. Example:  Assume [Read more]

Proper Reverse Mortgage Term Selection

Term selection can significantly impact your reverse mortgage borrowing costs. The most popular term is the 5-year fixed, but it also carries the highest interest rate. A 1-year fixed, for example, can cut your rate by 0.60%-points, saving you roughly $600 in interest over the [Read more]