Reverse Mortgage.

What is a Reverse Mortgage?

A reverse mortgage is a product available to Canadian homeowners aged 55 and older who are wishing to access their home equity. This means that you are able to access your home equity without the need to sell your property.  Depending on certain factors, you might be eligible to borrow up to 55% of the value of your home. 

How to Qualify for a Reverse Mortgage 

• You and your spouse must be 55 and older
• You must own your home
• Your age(s) will dictate the amount of that you may borrow
• Typically, the older you, the more money you can borrow
• You must receive independent legal advice (ILA) or representation (ILR)
• No health checks are required 
• Your property must be valued at $150,000 or more

Approval Factors

• You and your spouses age
• Property location
• Property type
• Property value
• Home equity 

Reverse Mortgage Benefits

• Access your home equity when and how you see fit, without needing to sell
• Your reverse mortgage is tax and payment free
• Your interest and principal payments aren’t required until the mortgage becomes due 
• Purchase a property or refinance
• Choose from a single advance or reoccurring advances
• No minimum credit score requirement
• No scheduled mortgage payments
• The reverse mortgage balance won’t exceed property value as long as obligations are met
• Won’t impact Old Age Security or Guaranteed Income Supplement

Reasons for a Reverse Mortgage

• Eliminate debt obligations
• Increase monthly cash-flow
• Assistance for a child or grandchild
• Early inheritance
• Unexpected health-care costs
• Purchase a vacation property
• Home renovations or retrofits
• Investment capital

A reverse mortgage is not the same as a traditional amortized mortgage where each mortgage payment repays a portion of principal and interest. With a reverse mortgage, your mortgage isn’t paid-down monthly, instead balloons. In other words, when you decide to sell your home, your mortgage balance will be greater than the initial amount that you borrowed. 

In some situations, a reverse mortgage can be very helpful. We are able to help you determine the amount you qualify for, and an indication of current reverse mortgage interest rates. The application process is quite simple and we will direct you accordingly.