We asked the experts
at Modular Home
Additions to tell us
why homeowners are
considering additions.
Check out this amazing
transformation!
USING
YOUR
EQUIT Y
WISELY!
REVERSE MORTGAGES
LEAD THE WAY!
Project by Modular Home Additions,
www.modular.ca
BEFORE
insider secrets
LOCATION, LOCATION Location is
one of the key considerations. For some
homeowners, an addition allows them to
stay where they are while adding much
needed space. For others, buying a
smaller bungalow and adding on to the
existing home is the most affordable option
when looking to relocate into desirable
neighbourhoods.
GROWING FAMILIES Changes in family
size and family dynamics are another
common reasons for an addition. Young
couples who have a smaller home may
choose an addition to make room for
children. For older families, adding an
in-law suite is an affordable alternative to
placing older parents in retirement homes.
For some families, lack of work, high
rental and real estate prices means young
people have to return home while they
begin building their careers.
INVESTMENT Adding more space or
renovating your existing space is the best
way to increase your home’s resale value.
Buyers love a ready-to-move-in property and
will pay top dollar for a home that has the
space they need! Adding a second floor to a
bungalow in a desirable neighborhood can
result in a much higher profit when the home
is sold.
With a reverse mortgage, Canadian
homeowners 55+ have the ability to access
cash they need when they retire, make a major
purchase, pay off debt, pay for living expenses,
or help kids buy a house or travel.
With a reverse mortgage, homeowners can
access their equity and still stay in their home
for as long as they choose. This can eliminate
the need to move or downsize, and avoids the
high costs related to selling a property.
For a homeowner that is nearing
retirement, there are choices. With a reverse
mortgage, owners get the best of all of the
choices:
ONE: STAY
Stay in their home and take out up to 55%* of
the equity.
TWO: FULL OWNERSHIP
Homeowners maintain full ownership and
are not required to make monthly mortgage
payments until the decision is made to sell the
house or move.
THREE: TAX-FREE
Money received is tax-free.
Discuss this option with a financial advisor,
because using cash from home equity means
there is no need to disturb the income stream
from RRSP/RRIF plans. In fact, depending
on the level of annual pension income,
home owners may well have access to the
Guaranteed Income Supplement.
So, with a reverse mortgage homeowners can
stay in their home, have cash that they need
and continue to benefit from price increases in
the value of the home. To learn more, speak to
your financial adviser or mortgage broker.
The Reverse Mortgage process is simple
and the lender is HomEquity Bank, a Schedule I
Canadian Bank. - Text by Bob Herr
*Conditions apply