Alternatives To Reverse Mortgages For Seniors

Seeking Alternatives To Reverse Mortgages For Seniors? Consider Bridgit

Elderly homeowners may have various reasons for seeking a reverse mortgage, whether it’s to downsize to a more manageable house or simply want to move to a different neighbourhood. While these debt-free home options may seem appealing at first, it’s wise to consider the potential drawbacks. Is there an alternative to reverse mortgage that still allows you to achieve your goals?

Thankfully, there are alternatives to reverse mortgages for seniors available where you can access the equity value of your home as a potential way to fund your next one. Read on to learn about how Bridgit’s bridging loans can help.

Reverse mortgages, explained

What is a reverse mortgage?

Before seeking alternatives to reverse mortgages for seniors, it’s best to understand what they are first. Reverse mortgages are alternative home loans that allow seniors to borrow money using the existing equity in their home as security. The proceeds can be taken as a lump sum, a regular income stream, a line of credit, or a combination of these options.

The minimum borrowing age is usually 60. Typically, the older you are, the more you can borrow as a percentage of your property’s value, which is why many seniors consider these mortgages as retirement funding alternatives or retirement income plans. However, it can be a bit complicated; let’s look into the pros and cons first.

Benefits of a reverse mortgage

Some elderly homeowners with assets may want more liquidity, leading them to seek financing options for seniors. For instance, you might realise that your house has become far too large for your needs, and you’re seeking to downsize. Or you may seek to move to a neighbourhood that makes it easier for you to see your grandchildren.

Unlike traditional mortgages, there are no monthly payments. The loan is only repaid when the borrower moves out, sells the house, or passes away. However, these purported debt-free home options are not without their drawbacks, which is why some may consider alternatives to reverse mortgages for seniors.

Downsides of a reverse mortgage

Here’s why it’s important to consider alternatives to reverse mortgages for seniors: reverse mortgages may come with high upfront costs. These senior housing options may include origination fees, closing costs, and mortgage insurance premiums, which can be more expensive than those for traditional mortgages.

Sometimes, seniors are targeted by unscrupulous lenders or salespeople who offer reverse mortgages as a gateway to independent living finance or a financial cure-all. Finally, a reverse mortgage does impede your ability to move to a new home since you will have less funds to purchase your new house once the loan is repaid.

For those who want to move into a new home, it may not be the best choice. That’s where Bridgit comes in.

Choosing Bridgit

Offering alternatives to traditional reverse mortgages

At Bridgit, we understand the unique needs of those looking for alternatives to reverse mortgages for seniors.

Our goal is to give people the chance to buy their next home on their own terms. We achieve this through bridge financing, or short term loans secured against property. It allows homeowners to tap into the current equity of their home as a way to fund their new home. This allows seniors to take the time to find their new home first without having to spend extra on temporary living and storage costs.

Technology and convenience

Our alternatives to reverse mortgages for seniors are powered by advanced technology to give our customers the best chance at securing their dream home. The application for our short term home loans or bridging loans only takes five to ten minutes. Plus, eligible applicants can get approval within twenty-four hours, and settlement is possible in as little as a few days.

How does it work?

If you’ve carefully studied alternatives to reverse mortgages for seniors and decided you want to apply for our bridging loans at Bridgit, here’s how it works.

If your application is approved, we’ll provide you with the funds to buy the property you’ve been eyeing. We would also refinance your existing mortgage over to us, so you won’t have to stress about managing multiple mortgages.

Generally, when you downsize, you won’t be left with a balance after the sale of your home, so we can release security for all your properties right away. You can, however, refinance any remaining balance on the loan to a longer-term lender if there is any after the sale, such as if you’re upsizing.

Disclaimer: Unless otherwise specified, the opinions expressed in this article are strictly for general informational purposes only and should not be taken as financial advice or recommendations. Any views are subject to change without notice at any time.