Seniors in Canada have been taking advantage of low interest rates and the tax breaks that come with having a mortgage. Whether you’re looking to to downsize to something smaller, purchase a new home or enter into a retirement community there are super deals available only to seniors. To find the best senior home loan rates available in your locality a simple online search can show your best options.
Mortgage Options For Seniors Over 55
According to a report by HomeStars 62% of Canadian homeowners over 55 are unaware of the tax benefits available.1 There is government initiatives granted to senior citizens in Canada to help with home loan grants. These different loan structures can help to offset certain taxes and save money in the long run. It is also illegal for a mortgage lender to deny you based on your age so as long as you can meet financial requirements you will be approved.
Best Lengths For Home Loans?
For a senior a big decision is based on the length of your mortgage duration because of the life expectancy compared to younger home buyers. Considering you’re in the later stages of life a long loan duration is not always the best choice. Home loans usually come in packages of 10, 15, 20 or even 30 years for most first time buyers. Making sure you’re aware of the loan length and changes in total payments is vital to getting the best home loan for your personal needs.
What Do I Need To Qualify?
- Proof Of Income – One of the vital aspects to getting approved for a home loan is proof of income. This for seniors can be difficult because if you’re on a pension or a low monthly income but have assets it can be hard to be approved for loans. You may be required to show your retirement plan funds and a combination of your pension payments.
- Outstanding Debts? – Listing all outstanding liabilities to gauge your asset to debt ratio is important to lending firms.
- Credit Score – Like most other countries in the world Canada is very dependent on credit scores. According to Borrowell the average Canadian credit score in 2022 is 672.2
Home Equity Lines of Credit (HELOC)
These types of loans are offered at the best rates but will be secured against your existing home. Some retired Canadians have difficulty getting access to loans because of retirement level income and current liabilities but this type of loan offers easier access. If you currently own a home this is a great choice.
Quick Applications Online For HomeWise3
Homewise Mortgages offer market ready interest rates from over 30 different banks and lenders in Canada. They are partnered with such brands as Scotiabank, TD Canada Trust, B@B Bank and Canadian Western Bank. They on average save clients up to $20,000 on the average mortgage so they claim. The only thing is they’re not available in Quebec. The reduction in stress and easy application of documents make this a great choice for seniors in Canada.
Breezeful Mortgages For Seniors4
Breezeful is a 100% online mortgage broker that also connects with over 30 banks and lenders in the country. Whether you’re searching for your dream home or want to lock in the best rates available for 2022 this is a great option. The beauty of this option is they use the one credit check for multiple lenders which stops your score from lowering over time. They have more flexibility in their approvals so if you have trouble getting a mortgage elsewhere using Breezeful might lead to approval success.
If you have the resources to cover the monthly mortgage payments a refinancing loan may be best suitable for you. It allows you to borrow up to 80% of your homes current value and use it to purchase another home or downsize. Once you make the purchase of a new home you can then sell the previous one to cover the funds.
Reverse Mortgages Rise In Popularity
Reverse mortgages are a more modern financial instrument for those who have a home but little access to funds. It allows you borrow up to 55% of your homes value all at once or in fixed monthly payment instalments.
Housing Programs For Pensioners?
Many senior citizens have unfortunately found themselves in a position of low retirement funds and may need assisting in home living. Current government plans have been created to help with this problem. The different plans to check out are Canada Pension Plan (CPP), Québec Pension Plan (QPP) or the Registered Retirement Savings Plan (RRSP).
Get Your Perfect Home Loan Today
If you’re in the market for taking out a new home loan and want to either downsize your living or move into a new home its much easier than you think. There are multiple benefits available to you that you might not be aware of. For those over 55 in Canada knowing the best options can save you huge money over the remainder of your lifetime and get you in a beautiful home. To find the best rates or speak to professionals regarding senior home loans a simple online search will identify your local requirements.