How to Plan for Your Elder Years: The Non-Conventional Solution
The time has come to think about your future. so learn about equity release and find the best strategy for you. You are retired or soon will be, and you are looking for a way to generate an income stream that doesn’t involve getting out of bed every morning. Perhaps you want the freedom of not having to worry about money anymore, or maybe you just need some extra cash flow because your pension isn’t enough. Whatever the reason might be, equity release may be right for you!
Equity release is a great way to access the equity in your home without having to sell it or move out. You can use this method if you’re no longer able to afford monthly mortgage payments, but still want to hold on to your house for emotional reasons (it’s where you raised your children) and financial ones (you would lose all of that valuable equity). Equity release provides the perfect solution!
According to statistics from 2012 , only seven per cent of Canadians aged 55 years and older are considering using some form of retirement income strategy like an annuity, reverse mortgage or bond term life insurance. If any of these options sound appealing, then read on about how they work as well as their advantages and disadvantages when compared with each other.
The most common form of equity release is a home reversion plan, also known as lifetime mortgage or home equity line of credit (HELOC). This allows you to borrow the money against your house and receive payments based on how much was borrowed at the time it was taken out. The interest rate may be fixed or variable depending on what suits you best. You can use this extra cash flow however you want – for example, paying off debt such as an outstanding car loan or consolidating high-interest lines of credit – without any penalty charges! Or if there’s nothing in particular that needs to be paid off right now, just pocket the cash until something comes up.