Home is where everyone feels comfortable and it is a vital part of everyone’s life. If you are in your 50’s or 60’s, you have likely lived for many years in your house and have thousands of memories there. You have raised your children there and spent valuable time with your friends and family.
But, the house which houses your memories may turn into a real problem if you don’t plan ahead. For many people, it's the strain of maintenance, and for others, the strain is financial in the form of bills and a mortgage.
While living in Canada, you may find a bundle of mortgage options but not every option is suitable for you. Selection of the right mortgage option depends upon whether you want to downsize your property or want to reinforce it.
There are many loan options available in Canada, and some of those are discussed below:
- Standard Mortgage: It is a traditional mortgage plan and lasts between 5-30 years. If you have a good credit rating and income, you are eligible for this mortgage.
- Second Mortgage: If you have low cash, then you should go for Second Mortgage. This type of loan has higher interest rates and involve more risk as well.
- Refinanced Mortgage: When you change loan type like change amount of loan, length of loan or rate, you are actually applying for a Refinanced mortgage.
Anything that involves money and seniors is incomplete without warning about scams. People always look to take advantage from seniors who do not have enough sense to make the right decision on their property. It is highly recommended to consult an attorney or financial advisor before making any decision about the mortgage. Keep in mind the following tips if you want to avoid scams:
- Carefully read the fine print before signing anything.
- If anyone is rushing you, it means you are about to be looted.
- Have proper market analysis.
- Keep in touch with the neighbors of the house which is sold.
- Search the web and have an estimated rate of the neighborhood areas of your house.
It is almost impossible to cover all the factors in one guide. However, as we mentioned above, you should make further research before committing to anything. Here are few things which you should consider before signing any paper:
- If you live in a house which is too big for you, downsize.
- If you are about to retire with a mortgage, do whatever it takes to make it affordable.
- If you find yourself in trouble, a reverse mortgage can be a decent asset for you.
The decision you will make about your house and mortgage will have a deep impact on your life and the ones who are close to you. Your house may become the best financial asset for you, so learn how to invest it properly.
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