It’s hardly unusual that most people work hard all their lives, just scraping by, wouldn’t have enough cash on hand for major home expenses including repairing and replacing windows and doors.
And when an emergency happens, it’s off to the bank or mortgage broker to get financing. Such financing has risk, since if you lose your income, you may default and lose your home. At age 60, that might be too risky.
And of those 60+, financing from a major Canadian bank may not be forthcoming. The small risk of lending to older customers might be too much for skittish Canadian banks, which are after all, reeling right now from their overexposure to Western oil and real estate.
How About a Loan You Will Never Repay?
You have an amazing asset: your home equity. And while it’s noble to give your kids $300k to $700k when you pass away, you need to continue to live your life fully or repair your house if needed.
Fortunately, there’s a financing option you may want to explore for new window financing or any other home renovation. It’s called the reverse mortgage.
A reverse mortgage acts as a lien on your property, but you will never be forced to sell your property. The amount owed is taken from your estate when you pass away. Therefore, you literally never have to repay it, as long as you are alive and are the owner/occupant of the home.
CHIP reverse mortgages aren’t free and there are administrative fees as well. Here’s a good look at the costs of reverse mortgages through Home Equity Bank below:
All that happens is that your own home equity decreases over the years. And that would depend on the amount you borrow. Even if Stouffville, Vaughan, Newmarket, Markham or Richmond Hill real estate values plummet, it has no effect on your mortgage financing arrangement with these companies.
Of course, Home Equity Bank and the other few providers will want to protect their investment. They expect you will pay your home taxes, home insurance, and maintain your home and property.
And you can always use your reverse mortgage funds to build a solarium, sunroom, or create a new custom glass and stone bathroom! Yes, a custom spa with a glass shower is popular. Do what makes you feel good.
The strong York Region/Markham/Stouffville real estate market along with low interests have created the best conditions possible for home equity loans.
There’s a lot of reasons you’ll want to replace your home windows in 2015 including energy efficiency lower cooling and heating bills, better internal comfort, more natural light into the home, less noise entering the home, and easier maintenance.