WHAT IS A
A reverse mortgage in Canada is a financial solution available to homeowners aged 55 or older. It allows them to access a portion of the equity in their homes without having to sell or move out. Unlike a traditional mortgage where the homeowner makes monthly mortgage payments, with a reverse mortgage, the homeowner receives payments from the lender.
Reverse mortgage requirements:
You are 55+ years old
You live in the home for at least 6 months of the year
You keep your residence in good order
You adhere to the loan terms which is paying your property taxes and maintenance
You can borrow up to 55% of the home equity
As long as you comply with these conditions, you will never be forced to move or sell your property as long as you live there. Once you move out or sell, the mortgage is required to be paid back.
Even if one applicant passes, the spouse can stay in that home with the reverse mortgage until they leave or pass.
You can use the equity in your home, as monthly income to supplement your pensions, or lump sum amounts to pay off debt, do renovations, invest, support your family, or pay for in-home care.
Interest is calculated on the outstanding balance of both principal and interest throughout the life of the mortgage. The outstanding balance will increase accordingly over time and be paid only on sale.
You are NOT required to make regular payments as it gets added to the principal overtime. This will allow you to budget on your cashflow or you can supplement the cashflow with your equity each month. It is a great product to allow you to use your equity to travel even when you are on a pension.
So, if you are struggling financially and are over 55 years of age, call us or book an appointment to review the options to stay in your home and use the equity to live comfortably. It is tax free and takes the burden off your family members.
We will show you how you can remove the struggle and enjoy your life while retired.