The current economic situation in Canada may pose challenges for young people, who are facing uncertainty with high interest rates and inflation, as they try to establish their careers, consider home ownership or starting a family. As a parent, you may be concerned about how to support your children during this difficult time. A Reverse Mortgage is a financial solution that can help you provide a tax-free gift to your loved ones.
By giving an early inheritance, you can help your children pay for important life events or expenses, such as their wedding, starting a business, paying off student loans, or making a down payment on a home. This can help them avoid probate fees and potentially save you money on taxes.
While some people may consider using a home equity line of credit or liquidating investments to provide an early inheritance, these methods come with drawbacks such as loss of earnings or tax implications. A Reverse Mortgage, on the other hand, allows you to unlock up to 55% of the equity in your home without impacting your investments or requiring monthly mortgage payments. This means your income is not affected, and the money you receive from the Reverse Mortgage is tax-free.
If you're interested in learning more about how a Reverse Mortgage can help you provide a tax-free gift to your children, contact our team scott@thewestlaketeam.com.
It's important to note that any client considering a reverse mortgage will require independent legal advise and fully understand all of the terms and conditions.