If you are in your 50s or 60s and are approaching retirement, you have probably considered selling your home as a way to gain extra income for your retirement plans. If you haven’t considered selling now, it may have crossed your mind for the future when things begin to need maintenance or renovations. When this happens, how will you pay for it? If you would like to move but still have an existing mortgage, will you be able to afford it?

Rather than leave the house where you have made many memories due to the fear of unexpected future costs, there might be mortgage options that can help you stay in your home during retirement, or have the flexibility to move somewhere that works for you. Read on to find out!

In Canada, you have a few different mortgage options that will suit different needs. See a few of them below:

Standard Mortgage

This is a traditional mortgage that can last from 5-30 years. You are eligible for this as long as you have a good credit rating and income.

Second Mortgage

This is an option for those finding themselves low on cash at the moment. Be aware that this type of loan typically involves higher interest rates and more risks!

Refinanced Mortgage

When you make changes to the amount, length, or rate of your existing loan, this is categorized as an application for a refinanced mortgage.

Reverse Mortgage

This option allows homeowners who are 55 and over to unlock part of their home’s equity without making monthly payments. You must not have any existing loans to apply for this option.

No matter what option you find to be best, always be careful when dealing with your property and finances. It is highly recommended to consult legal advice before signing any agreement, and always be sure to read the fine print and take your time in signing. If you are being rushed, this is a sign that you should not be dealing with the person who is rushing you. Finally, do your homework! Even doing a quick online search of the average house price in your neighbourhood helps to give you a good idea of what the value of your home may be.

While this article is a great starting point to let you know what mortgage options you may have during retirement, be sure to do thorough research to determine the best option for you. I’m always happy to help you find the best fit for you, contact me today to get started!