What is a Reverse Mortgage?
What is a Reverse Mortgage?
A financial solution designed for Canadian homeowners over 55
Unlike a traditional mortgage where you make payments to a bank or someone else, a reverse mortgage lets you unlock the equity in your home to pay yourself. You can use the money in anyway you want and live comfortably knowing you don't need to leave your home.
The biggest benefit of a reverse mortgage is that you are not required to make regular payments for as long as you or your spouse lives in your home.
Reverse Mortgage Quick-Facts and Features
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1
Tax Free Money
The money you receive does not constitute a part of your taxable income, meaning that your Old Age Security (OAS) and Guaranteed Income Supplement (GIS) is not affected.
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2
Maintain Ownership of Your Home
Contrary to popular belief, you will not lose your home with a Canadian reverse mortgage. You'll never be asked to move or sell to repay your reverse mortgage. The requirement is to maintain your property and stay up-to-date with property taxes, fire insurance and condominium or maintenance fees while you live there.
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3
Use The Money Anyway You Wish
A reverse mortgage can help you supplement your income or cover unexpected expenses. Travel, pay for medical bills, upgrade your home, help family and loved ones, and pay monthly expenses without depleting your current savings. The only condition is that any outstanding loans secured by your home must be paid out with the proceeds from your reverse mortgage.
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4
Keep All Remaining Home Equity
In many years of experience, 99 out of 100 homeowners have money left over when their reverse mortgage is repaid. And on average, the amount left over is 50% of the value of the home when it is sold.
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5
Basic Qualification
To qualify you must be a Canadian home owner, 55 years of age or older. The age qualification applies to both you and your spouse. Get up to 59% the value of your home; No credit, no health check and no income needed. Your home must be your primary residence.
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6
No Repayment While Living In your Home
Regular mortgage payments are not required while you or your spouse are living in the home. The full amount only becomes due when you and your spouse no longer live in the home.
