Older Canadians and Future Housing

HouseOlder Canadians and Future Housing

It is important to think about your future housing needs as you get older. There are several different kinds of seniors’ housing so you can find out what types of home support are available in your neighbourhood. At the same time, consider your current home to see if there are things you can do to make it easier and safer, as you get older. If you have a disability, you might be eligible for government assistance to pay for home renovations. You should also find out what kind of services are available in your community such as home support—you may want to ask your family doctor and/or someone you trust for any advice or guidance regarding support services. Researching and understanding your options will help you make future decisions about your housing. There are several different types of seniors housing and access to subsidized units for low-income seniors. You will have the option between independent living, retirement homes and assisted living, nursing homes or long-term care.  You should compare costs and services offered in each setting.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

Reverse Mortgages

bankruptcy_mortgageReverse Mortgages

A reverse mortgage is a home loan for individuals or couples 55+ years or older. You borrow from the value of your home and does not require monthly mortgage payments. However, interest is added to the loan’s balance and if no payments are made the interest can eventually exceed the value of the home. Reverse mortgages are risky and you need legal advice before considering this even as an option.

Advertising makes a reverse mortgage sound attractive because they push 4 points of interest:

1. You don’t have a monthly payment until you move.

2. You can receive a lump sum of money if you’ve paid off your home—sometimes 50% of the value of your home.

3. If you are house poor, you have extra cash money—you can use the money for healthcare needs or home repair and living expenses.

4. Tax-free source of income

However…

Interest on the reverse mortgage increases which in turn decreases the equity you have in your home. The interest can sometimes increase to more than the house is worth and there are higher interest rates than most mortgages.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

Buying a House, a Good-or Bad Idea?

HouseIs Buying a House a Good Idea or a Bad Idea?

I have always believed (because my parents told me) that owning a house was better than paying rent. The house will go up in value – the rent goes to a landlord and you get nothing in return. Now that I am at the stage of life that I can start thinking of owning a home, I am questioning – should I do it? When I pay rent, if anything goes wrong, I phone the building superintendent and it gets fixed a few days later while I am at work. And yes, rent does go up each year, but only a little. And if I decide to move, my only cost is the moving company. My friends who have bought a house talk about the negotiations with the mortgage company or bank. Plus, after they move in, they had to buy drapes, carpets, insurance, security equipment, gardening equipment and G-d knows what else. They tell me that the house will go up in value and it will be their retirement. I ask what will happen if mortgage rates go up or the roof leaks or windows need to be replaced. They tell me that they will get a line of credit secured on the house – but is this not just eating up the equity for their retirement? I keep thinking about ketchup soup, K D dinners that I sometimes had in college. I really like the freedom that I have.

So, what is my plan? I realize that I will retire someday and will need money to do that. I am not going to buy the biggest house that I can afford and then, if anything bad happens, my debt load will rule my life. I will hedge my bet by buying a small house (hopefully not too far in the burbs) or a condo in the city to cut down the travel time and cost. Works for me and keeps my sanity.

But what if I meet someone and we talk marriage and kids – OMG. All bets are off.

 

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

Reverse Mortgages

Bankruptcy and MortgagesReverse Mortgages

A reverse mortgage is a home loan for individuals or couples 55 years or older. You borrow from the value of your home and does not require monthly mortgage payments. However, interest is added to the loan’s balance and if no payments are made the interest can eventually exceed the value of the home. Reverse mortgages are risky and you need legal advice before considering this even as an option.

Advertising makes a reverse mortgage sound attractive because they push 4 points of interest:

1. You don’t have a monthly payment until you move.

2. You can receive a lump sum of money if you’ve paid off your home—sometimes 50% of the value of your home.

3. If you are house poor, you have extra cash money—you can use the money for healthcare needs or home repair and living expenses.

4. Tax-free source of income

However…

Interest on the reverse mortgage increases which in turn decreases the equity you have in your home. The interest can sometimes increase to more than the house is worth and there are higher interest rates than most mortgages.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.