In 2021, there were more than 1.6 million divorced people between the ages of 55 and 89 years old in Canada. This phenomenon, commonly known as “Grey divorce”, is defined as those over the age of 55 going through a divorce. For many of these individuals, staying in the home they love is a priority, but they may not have the funds on hand to finance a buyout.
If you lack the means to generate new wealth or face difficulties borrowing due to a lack of employment income, it can be tempting to dip into your retirement savings or investments to cover the cost of a home buyout. However, there is a better solution.
For those looking to finance the buyout of their marital home, a reverse mortgage may be the answer. A reverse mortgage could help you tap into the equity you’ve built in your home to buy out your spouse’s half of the home. With a Reverse Mortgage, you can access up to 55% of the value of your home and turn it into tax-free cash. What’s more, there are no monthly mortgage payments, which can help free up additional cash, which you can use to pay for renovations, cover medical expenses, or pay down debt. How you choose to use your funds is up to you.
Big life events like divorce are challenging. Please don’t hesitate to contact me to learn more about how a Reverse Mortgage can make a difficult time a bit less challenging.
