Welcome to the reverse mortgage
Leverage Home Equity with a Reverse Mortgage for Canadians Aged 55+
If you’re like most Canadians aged 55 and above, a significant portion of your net worth probably comes from the equity in your home.
Over the years, your home’s value has likely increased, which is great news. However, the challenge lies in accessing that equity when you need it. What if your pension doesn’t cover all your monthly expenses? In such a situation, a Reverse Mortgage could be the solution you’re looking for.
Reverse mortgages cater to homeowners seeking to tap into their home equity while simultaneously boosting their monthly cash flow. With most of the products available today, you can access your home equity, forego mortgage payments, and continue living in your home for as long as you desire.
The funds acquired through a reverse mortgage can be utilized for a variety of purposes, granting you the freedom to pursue your dreams. Whether it’s travel, home renovations, unexpected expenses, day-to-day spending, debt consolidation, or leaving a warm inheritance to your adult children or grandchildren, the choice is yours. Upon approval, you have the option to receive the funds tax-free all at once, in smaller lump sums, as a monthly income, or even a combination of lump sum and monthly income.
Rest assured, you retain full ownership of your home until you decide to move or sell; the control remains in your hands. Embrace the financial freedom a reverse mortgage offers and make the most of your home equity today.
FAQs
What is a reverse mortgage in Canada, and what is the eligibility requirement?
A reverse mortgage in Canada is a type of loan that allows homeowners aged 55 and older to access the equity they have built up in their homes over time.
To be eligible for a reverse mortgage in Canada, you must be at least 55 years old, own your home outright or have a low mortgage balance that can be paid off with the proceeds from the reverse mortgage, and live in the home as your primary residence.
How is the money from a reverse mortgage in Canada paid out?
The money from a reverse mortgage in Canada can be paid out in several ways, including as a lump sum, or regular monthly payments. You can choose the option that best fits your needs.
Why get a reverse mortgage?
No monthly mortgage payments: With a reverse mortgage, the loan is repaid when the senior move out of the home or passes away.
Flexibility: Seniors can choose how they receive the funds from a reverse mortgage, whether as a lump sum, or regular monthly payments. This is Tax Free.
Protection for non-borrowing spouse: If one spouse passes away or moves out of the home, the other spouse can continue to live in the home without having to repay the loan.
No risk of losing the home: Seniors who take out a reverse mortgage in Canada can continue to own and live in their home for as long as they choose (This is a non-callable mortgage).
Are you eligible for a reverse mortgage?
You live in a major urban centre in Canada (certain products are for certain provinces).
Your home is your principal residence, meaning you are there for at least 6 months of the calendar year.
Title holders of the residence apply as joint borrowers.
Your home is owner-occupied and not a second home.
You live in a detached or semi-detached home, condo or townhome.
You demonstrate the ability to pay for annual property taxes, insurance and condo fees (if not demonstrated, the lender may hold back a portion of the funds, and do a gradual release to ensure that you are making the above-stated payments).
The youngest applicant is 55 years old.