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Reverse Mortgage.

Helping Those 55+ Access Their Home Equity.

Reverse mortgages across Canada

"Reverse Mortgage Experts."

S.C. - Vancouver Homeowner

What Is a Reverse Mortgage?

What is a reverse mortgage?

a mortgage product for canadian seniors.

A reverse mortgage is a product designed for Canadian homeowners age 55+ to access their home equity and convert it to tax-free cash that can be used for numerous purposes. Unlike a traditional residential mortgage that has scheduled mortgage payments, a reverse mortgage does not have scheduled payments. A reverse mortgage enables eligible homeowners to access up to 55% of the appraised value of their home, depending on the homeowner’s age. The qualifying criteria is quite simple compared to qualifying for a traditional mortgage. Like any mortgage product, it is important to understand the features and if the product makes sense for the homeowner’s circumstances and borrowing objectives. Note that a reverse mortgage can only be registered in first position, meaning that any existing first or second mortgages, home equity lines of credit or home equity loans must be discharged from title. DV Capital facilitates reverse mortgages throughout Ontario, British Columbia and Nova Scotia.

How does a reverse mortgage work?

it's your equity, access it anytime.

As mentioned above, a reverse mortgage is a mortgage that does not have scheduled payments. In other words, homeowners do not make mortgage payments towards this reverse mortgage. Naturally, as a result, the reverse mortgage is not on a fixed repayment schedule, often referred to as an amortization schedule. Instead, the principal balance grows along with the interest that compounds during the term of the mortgage. In other words, the balance of the reverse mortgage continues to grow for as long as the mortgage is outstanding, until such time the mortgage is repaid. A reverse mortgage does not affect your Old Age Security or Guaranteed Income Supplement benefits. Homeowners age 55+ can access to up to 55% of the value of their equity, depending on the property type, condition appraised value and most importantly the age of the homeowners. The homeowner’s age will determine the maximum qualifying ‘loan to value’. In other words, the younger the homeowner, the less they can borrow. Whereas, the older the homeowner, the more they can borrow provided the loan to value does not exceed 55% of the appraised value of the property. Interest rates typically exceed interest rates for a traditional mortgage or home equity line of credit, however, the surcharge is a result of the flexibility and simplified qualifying process compared to traditional mortgages, especially when traditional mortgages are not available due to the homeowners income at their age and stage of life, for instance, those retired and unable to pass the mortgage stress-test with a traditional mortgage lender. Funds are typically provided in two different manners: as one lump sum advance to the homeowner or multiple advances over time. 

How Does A Reverse Mortgage Work?
How to Apply for a Reverse Mortgage

How to Apply for a Reverse Mortgage.

contact us 7 days a week.

Applying for a reverse mortgage is quite simple, thanks to DV Capital’s user-friendly online application system. Upon completion, your mortgage application will be quickly reviewed and we will contact you to discuss a potential strategy and begin working on securing approval options. DV Capital’s mortgage broker advisory channel has access to Canada’s leading reverse mortgage providers, which should improve the chances of securing multiple options, if possible, as opposed to only providing one possible option, by default. DV Capital is a one-stop shop and will take care of all of the heavy lifting for you and your loved ones and will work with and for you from start to finish. If you are simply looking for preliminary information and not yet ready to complete an application, we warmly invite you to contact us and we will coordinate a phone call with you directly and/or your family members, accountant or financial advisor. DV Capital is a licensed mortgage brokerage that facilitates reverse mortgages in Ontario, British Columbia & Nova Scotia to homeowners age 55+ wanting to access home equity.

Reasons for a reverse mortgage.

Use your equity how you'd like.

  • Access up to 55% of the value of your home. 
  • Eliminate higher interest rate debt obligations.
  • Improve monthly cash flow for daily expenses.
  • Provide children with an advanced inheritance.
  • Pay for unexpected healthcare expenses.
  • Pay for home repairs & renovations.
  • Home renovations.
  • Avoid breaking investments. 
  • An alternative to selling your home and renting. 
  • A borrowing option for those who can’t pass the stress-test.
Reasons for a Reverse Mortgage
How Is A Reverse Mortgage Repaid?
How is a reverse mortgage repaid?

learn how to repay a mortgage.

Unlike a traditional mortgage that has scheduled mortgage payments based on an amortization schedule, a reverse mortgage does not have scheduled mortgage payments and therefore the balance continues to grow as time goes on. Traditional mortgages typically have three different kinds of prepayment penalties. If the mortgage is fully open, it can be paid out before maturity without penalty. If the mortgage is closed, depending on whether the mortgage has a variable or fixed rate, the penalty is either a 3 month interest penalty or the greater of a 3 month interest penalty and the interest rate differential. The prepayment penalty for a reverse mortgage varies based on the reverse mortgage lender, whether the rate is fixed or variable and is typically calculated based on either or all of the following factors: the reverse mortgage balance (principal + interest), the contract interest rate, and how many years are remaining on the term of your reverse mortgage and the current market interest rate for a term equivalent to the months remaining in your reverse mortgage term.  In some cases, unless you are paying off the entire balance, you might be required to maintain a minimum balance. Ultimately, a reverse mortgage is repaid on the earlier of the mortgage being repaid in full, when the property is sold, mortgage default or when the homeowners pass away. 

Reverse Mortgage Facts.

Understand the Pros & Cons.

  • Retain 100% ownership of the title of your property. 
  • Receive your funds in a lump-sum or multiple advances. 
  • You will not have to make any mortgage payments. 
  • You must maintain the condition of your property.
  • You must maintain adequate home insurance.
  • You must make timely property tax payments.
  • Most set-up costs are deducted from the mortgage proceeds.
  • Interest rates are generally above that of traditional mortgages. 
  • Will not affect your Old Age Security or Canada Pension Plan.
  • Use your home equity when and however you’d like.
Reverse Mortgage Facts

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