An ideal mortgage service for retirees

The mortgage service or product I am discussing here is the reverse mortgage.

A reverse mortgages is a mortgage policy primarily targeted to senior citizens- that is those after 60’s.

The mortgage policy works as an investment vessel enabling home owners to use part (not all) of the equity existing in their homes for investment tax free.

The beauty of this scheme is that the investor does not lose the title to his home. Also he is not burdened to make new monthly mortgage payments. This product will improve the level of investments in the country.

To access the reverse mortgage program, you have to be 62 years of age so most people do not qualify.

The reason why is targeted to those over 62years is that is primarily aimed for those who have paid off the mortgages on their homes. Many of these individuals fall into this category. In the event that the intending user still a mortgage on his home, his first mortgage must be paid off with the mortgage he has just received.

It is used for investment purposes and not to offset debts and that is why the income earned is tax –free. No tax whatever is paid.

Payments can be paid monthly or as a line of credit. It can also be disbursed as a lump sum.

Other things to be aware of is that upon death, those that inherit have to either pay off the mortgage in order to have title to the house or sell the property to offset the mortgage.
Repayment amounts can also not exceed the value of the home.

The services of a lawyer or money manager who is familiar with the facility should be consulted before acquiring this facility.

Facility is open only to owner occupiers only and extended to the home in which the beneficiaries are dwelling.

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