Get the lowest rates possible today.

Reverse Mortgage

A solution designed specifically to meet the needs of senior homeowners.

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The reverse mortgage is designed for Canadian homeowners aged 55 and older who want to live retirement on their terms. If you’re like most Canadian homeowners 55+, much of what you own fits into two categories – the equity in your home and the money you have saved. It is likely that the value of your home has grown over the years and makes up a large portion of your net
worth. And, while it is positive that your home has built value, this value is not accessible unless you decide to sell your home.

The reverse mortgage allows you to access up to 55% of its value without having to sell your beloved home. And, best of all, you don’t have to make regular mortgage payments until you eventually move or sell. Additionally, the money you borrow is tax-free and it does not affect the Old-Age Security (OAS) or Guaranteed Income Supplement (GIS) benefits you may be getting.
As the homeowner, you are required to maintain your home, be permanent resident, and remain current on property taxes and homeowners’ insurance. To recap, the reverse mortgage is suitable for people who want to access to equity from their home without moving and improve their monthly cash flow. With the reverse mortgage, you always remain on title and retain ownership and control of your home.

Reasons to Consider a Reverse Mortgage

Reverse mortgages are designed to allow you to access up to 55% of your home’s equity, thereby allowing you to convert your home equity into cash. This can be done as either a one-time lump sum payment, or you can choose to structure it to receive monthly payouts. The money received through a reverse mortgage can be used to pay off existing debts, gift money to family, expand qualify of life, add safety features to the home, or expand your investment portfolio.

You can also switch your existing mortgage dollar-for-dollar to eliminate payments and increase cash flow.

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Benefits of a Reverse Mortgage

The benefits of a reverse mortgage don’t just stop at the ability to cash in on your home’s equity! In fact, these benefits also include:

  • No monthly mortgage payments
  • No income or credit qualifications
  • Very low / little paperwork required
  • Title and ownership of property remain in the homeowner’s name
  • Flexible options to break term early and to pay interest off monthly, if preferred
  • Penalty waived in the event of death or care home placement to preserve the estate

If you think a reverse mortgage might be the right option for you or your parents, contact me today to discuss your current situation and how this increasingly popular mortgage can help.

Misconceptions about a Reverse Mortgage

With a Reverse Mortgage, You No Longer Own Your Home

FALSE. You always maintain title, ownership and control of your home. The reverse mortgage lender simply has a first mortgage on the title.

You Will Owe More Than the Value of Your Home

FALSE. Most reverse mortgages come with a “No Negative Equity Guarantee” the notes as long as the homeowner has met the required obligations, the amount you will have to pay on the due date will not exceed the fair market value of your home.

Reverse Mortgages are Expensive

FALSE. Much like a conventional mortgage, an appraisal of your property and independent legal advice is required for a reverse mortgage and will be similar to the costs you would incur on a regular payment mortgage. However, beyond this the only additional fees are a one-off closing and administration fee. When compared to the cost of moving to another home, the reverse mortgage is a much more affordable option.

Reverse Mortgages Have Higher Interest Rates

DEPENDS. While interest rates are typically a bit higher than a traditional mortgage, the difference is not excessive. In addition, it is important to remember that monthly mortgage payments are not a viable option for most retired Canadians. In addition, there are many who struggle to even qualify for a traditional mortgage. For these reasons, many retired Canadians are choosing reverse mortgages over conventional solutions.

You Can’t Pass on Your Home

FALSE. Another myth is that your children won’t be able to inherit your home if you utilize a reverse mortgage. This is not the case as your heirs will always have the option of keeping the property by paying off your reverse mortgage after you pass away. Plus, if you have a “No Negative Equity Guarantee” in your reverse mortgage contract, then if the mortgage amount due is more than the gross proceeds from the sale of the property, the lender will cover the difference between the sale price and the loan amount. Therefore, you will never owe more than the fair market value of the home.

Get the lowest rates possible today.

Reverse Mortgage

A solution designed specifically to meet the needs of senior homeowners.

image

The reverse mortgage is designed for Canadian homeowners aged 55 and older who want to live retirement on their terms. If you’re like most Canadian homeowners 55+, much of what you own fits into two categories – the equity in your home and the money you have saved. It is likely that the value of your home has grown over the years and makes up a large portion of your net
worth. And, while it is positive that your home has built value, this value is not accessible unless you decide to sell your home.

The reverse mortgage allows you to access up to 55% of its value without having to sell your beloved home. And, best of all, you don’t have to make regular mortgage payments until you eventually move or sell. Additionally, the money you borrow is tax-free and it does not affect the Old-Age Security (OAS) or Guaranteed Income Supplement (GIS) benefits you may be getting.
As the homeowner, you are required to maintain your home, be permanent resident, and remain current on property taxes and homeowners’ insurance. To recap, the reverse mortgage is suitable for people who want to access to equity from their home without moving and improve their monthly cash flow. With the reverse mortgage, you always remain on title and retain ownership and control of your home.

Reasons to Consider a Reverse Mortgage

Reverse mortgages are designed to allow you to access up to 55% of your home’s equity, thereby allowing you to convert your home equity into cash. This can be done as either a one-time lump sum payment, or you can choose to structure it to receive monthly payouts. The money received through a reverse mortgage can be used to pay off existing debts, gift money to family, expand qualify of life, add safety features to the home, or expand your investment portfolio.

You can also switch your existing mortgage dollar-for-dollar to eliminate payments and increase cash flow.

image
image

Benefits of a Reverse Mortgage

The benefits of a reverse mortgage don’t just stop at the ability to cash in on your home’s equity! In fact, these benefits also include:

  • No monthly mortgage payments
  • No income or credit qualifications
  • Very low / little paperwork required
  • Title and ownership of property remain in the homeowner’s name
  • Flexible options to break term early and to pay interest off monthly, if preferred
  • Penalty waived in the event of death or care home placement to preserve the estate

If you think a reverse mortgage might be the right option for you or your parents, contact me today to discuss your current situation and how this increasingly popular mortgage can help.

Misconceptions about a Reverse Mortgage

With a Reverse Mortgage, You No Longer Own Your Home

FALSE. You always maintain title, ownership and control of your home. The reverse mortgage lender simply has a first mortgage on the title.

You Will Owe More Than the Value of Your Home

FALSE. Most reverse mortgages come with a “No Negative Equity Guarantee” the notes as long as the homeowner has met the required obligations, the amount you will have to pay on the due date will not exceed the fair market value of your home.

Reverse Mortgages are Expensive

FALSE. Much like a conventional mortgage, an appraisal of your property and independent legal advice is required for a reverse mortgage and will be similar to the costs you would incur on a regular payment mortgage. However, beyond this the only additional fees are a one-off closing and administration fee. When compared to the cost of moving to another home, the reverse mortgage is a much more affordable option.

Reverse Mortgages Have Higher Interest Rates

DEPENDS. While interest rates are typically a bit higher than a traditional mortgage, the difference is not excessive. In addition, it is important to remember that monthly mortgage payments are not a viable option for most retired Canadians. In addition, there are many who struggle to even qualify for a traditional mortgage. For these reasons, many retired Canadians are choosing reverse mortgages over conventional solutions.

You Can’t Pass on Your Home

FALSE. Another myth is that your children won’t be able to inherit your home if you utilize a reverse mortgage. This is not the case as your heirs will always have the option of keeping the property by paying off your reverse mortgage after you pass away. Plus, if you have a “No Negative Equity Guarantee” in your reverse mortgage contract, then if the mortgage amount due is more than the gross proceeds from the sale of the property, the lender will cover the difference between the sale price and the loan amount. Therefore, you will never owe more than the fair market value of the home.