Your New Worth statement is impressive, You have real estate and other assets; but you do not have cash flow. There is not enough money coming in to pay the Municipal Property taxes, Heat and Hydro, plus the other normal living expenses that have so recently increased.
Choices are simple
1.0 Sell the House; but where will you live?
2.0 Create a HELOC ( Home equity line of Credit)
3.0 Create Reverse Mortgage
A reverse mortgage allows you to borrow against home equity while continuing to own and live there. You receive funds tax-free as a lump sum or as regular monthly cash flow. The loan only becomes due if you sell the home, move or when the last surviving owner dies. On the surface this is a very appealing option to those that would like to stay put and do not have enough cash flow to comfortably cover their expenses. However, relying on a reverse mortgage for cash flow over many years is a risky plan as the total debt continually increases while home equity decreases. Needless to say this is not a good combination in your retirement years with a few decades to fund.
To qualify for a reverse mortgage in Canada, you must be age 55 or older and live in your home for at least six months of the year. If eligible you can borrow up to 55% of the property’s value. There are no repayments required until the mortgage is due and you don’t need an income to qualify. Funds come tax-free and if the house value drops or interest rates rise there is no risk. At first, it sounds too good to be true. And it is. For example, reverse mortgages are expensive to set up and the interest rate charged on the loan is normally over twice as high as a conventional mortgage rate. https://www.greaterfool.ca/2020/12/02/in-reverse-2/
I urge to consult with a licensed experienced Mortgage Professional. Lindsay Doke with Mountainview Mortgage. at 416 464 6423 or
Services Provided This could be right for you.
http://www.renewyourmortgage.ca/services.html
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