Using a Reverse Mortgage to Cover Nursing Home Expenses
Using a Reverse Mortgage to Cover Nursing Home Expenses
John and Debbi (age 77 and 73 respectively) are residents of Burnaby. Recently John was permanently placed in a nursing home because of dementia. Debbi is struggling with the finances and concerned as their savings will be completed depleted within 6 months. She is considering selling their home to get money to pay for the nursing home expenses. Debbi does not wish to sell as she enjoys her home and loves to garden. She is also concerned about accommodation for her children and grandchildren when they come from out of province to visit her and see John in the nursing home. Their home is worth roughly $925,000 and they have a small secured line of credit for $75,000. Their current sources of income are CPP ($1500 per month), OAS ($1128 per month) and John’s small company pension of $450 per month. Their total monthly income of $3078 is insufficient to cover John’s monthly nursing home expenses of $3500. Unsure what she should do going forward, she sought out financial advice.
As your typical mid income seniors, they have limited options. They may be able to increase the secured line of credit but they would reach a new limit in very short order.
After careful consideration and input from her children Debbi decided the Income Advantage Reverse Mortgage was the best solution for her current needs. Easy to qualify and no worries about payments of any sort till she moves or sells. Subsequently, she applied and was approved for an Income Advantage Reverse Mortgage for $370,000. She took an initial advance of $75,000 to pay off the secured line of credit and set up a monthly draw of $1000 per month to cover her budget requirements.
She also doesn’t need to worry about finances going forward as she has a considerable amount of credit to tap into when and if needed.
Now she can remain in her home as long as she desires with no financial worries and peace of mind knowing that she can pay for John’s care. And support her family when they come to visit John.
Feel free to call me to discuss any potential client situation.
John and Debbi (age 77 and 73 respectively) are residents of Burnaby. Recently John was permanently placed in a nursing home because of dementia. Debbi is struggling with the finances and concerned as their savings will be completed depleted within 6 months. She is considering selling their home to get money to pay for the nursing home expenses. Debbi does not wish to sell as she enjoys her home and loves to garden. She is also concerned about accommodation for her children and grandchildren when they come from out of province to visit her and see John in the nursing home. Their home is worth roughly $925,000 and they have a small secured line of credit for $75,000. Their current sources of income are CPP ($1500 per month), OAS ($1128 per month) and John’s small company pension of $450 per month. Their total monthly income of $3078 is insufficient to cover John’s monthly nursing home expenses of $3500. Unsure what she should do going forward, she sought out financial advice.
As your typical mid income seniors, they have limited options. They may be able to increase the secured line of credit but they would reach a new limit in very short order.
After careful consideration and input from her children Debbi decided the Income Advantage Reverse Mortgage was the best solution for her current needs. Easy to qualify and no worries about payments of any sort till she moves or sells. Subsequently, she applied and was approved for an Income Advantage Reverse Mortgage for $370,000. She took an initial advance of $75,000 to pay off the secured line of credit and set up a monthly draw of $1000 per month to cover her budget requirements.
She also doesn’t need to worry about finances going forward as she has a considerable amount of credit to tap into when and if needed.
Now she can remain in her home as long as she desires with no financial worries and peace of mind knowing that she can pay for John’s care. And support her family when they come to visit John.
Feel free to call me to discuss any potential client situation.
