Did you know 39% of Canadians or 44% of households are over the age of 55 and is the fastest growing demographic in Canada? There has never been a better time to get acquainted with the advantages of a Reverse Mortgage for your financing solutions.
What is a REVERSE MORTGAGE?
The loan is repaid only when the homeowners are no longer living in the home.
There are a few qualifications in order to be eligible for a reverse mortgage, you must be at least 55 years of age, and the reverse mortgage can only be placed on your principle residence.
The homeowner is required to keep the property in good condition up-to-date with property taxes and property insurance.
The money received is tax-free and can be used however, the homeowner wishes.
How Can a Reverse Mortgage Help Me?
- Pay off debts
- Handle unexpected expenses
- Help children or grandchildren
- Improve day-to-day standard of living
- Make a special trip or purchase
- Invest in a passion or hobby
There are different Reverse Mortgage Products on the market, offered by 2 lenders in Canada who are Schedule 1 federally regulated banks. This gives Canadian Seniors great security as they are accessing their largest asset at a time when they want the least amount of risk in their lives. Homeownership remains in the homeowner’s name, and you will never owe more than the fair market value of the home at the time of sale.
How Do I Receive My Money?
Reverse Mortgages in Canada have made it simple to access your equity with a couple of different products. You can choose from a lump sum deposit into your account or you can top up your income monthly, you can also take out a lump sum now with a monthly deposit at a later time.
The flexibility is there to suit your needs, whether it is getting your finances in order to retire stress free, or maybe indulge a little bit on yourself.
An Alternate to Downsizing
The Reverse Mortgage gives you the alternative to downsizing that allows you to stay in the home you love. You can borrow up to 55% of the value of the home in tax-free cash. With making no monthly payments your cash flow is increased for renovations, travel, home care or whatever you wish to spend it on.
If you are downsizing, and purchasing a new home your Reverse Mortgage can be placed on the new home as it serves to finance, refinance, bridge finance or purchase.
The longest term is 5 years offering peace of mind without a long term commitment. Short term financing solutions are available as well, everyone needs are different and a Reverse Mortgage offers a solution for those varying needs.
If you are curious as to how much you may be eligible for or simply want more information at this time, please contact me without any obligation from you. It is important for you to become educated on the Reverse Mortgage so when you make the decision you are confident you chose the right solution for your needs.
And wouldn’t it be kind of fun to pick up that old hobby again you once enjoyed?
Reverse Mortgage Explained
For more reverse mortgage information, refer to the following articles that shed more light into this unique mortgage product.
Reverse Mortgage Pros And Cons
A reverse mortgage is basically for seniors starting from the age of 55 years up. Over the years a reverse mortgage as a product gained bad reputation due to being misunderstood. A lot of myths and conceptions grew around it despite the many advantages and benefits it brings to our seniors.
Isn’t It Time Your Home Started Paying You Back?
A Reverse Mortgage is a mortgage product secured by a principle residence enabling the homeowner to access the equity of the home and not make traditional mortgage payments on the loan. 93% of Canadians want to age in place, in the home they love.
What a No Payment Mortgage Can Do for You
With more seniors retiring each year with debt, a Reverse Mortgage is becoming a popular solution for retirees. And it doesn’t stop here. If you are 55 years of age, with a principle property you can access the equity in your home and turn it into tax free money.
Helping Canadians Age in Place with a REVERSE Mortgage
Did you know 39% of Canadians or 44% of households are over the age of 55 and is the fastest growing demographic in Canada? There has never been a better time to get acquainted with the advantages of a Reverse Mortgage for your financing solutions.
Reverse Mortgage Questions
The following frequently asked questions about reverse mortgage facts will also help answer some of your unanswered questions.
Are reverse mortgages transferable?
Reverse mortgages are not transferable and it usually belongs to one person or two married spouses. If one spouse dies but the surviving spouse is identified as a co-borrower on the reverse mortgage, the surviving spouse will stay in the house and the loan terms remain unchanged. Adult children and other nonspouse descendants, on the other hand, must pay off the debt when the last borrower dies. They have the option of keeping the house or selling it.
Can you get a reverse mortgage on a condo in Canada?
Another factor is the location of the property the type of dwelling on the property and the overall marketability of the property. So let’s start with the location of the property. The location of the property must be in an urban centre, it cannot be a rural property or an agricultural zoned property. It must be the applicants’ owner occupied principle residence and this can either be a single family home, an apartment style condo, a high rise condo or a town home.
What happens at end of reverse mortgage?
At the end of a reverse mortgage, the loan must be repaid when the last surviving borrower passes away. Most of heirs will sell the house to pay back the loan. The heirs will not have to pay more than 95% of the appraised value if the loan balance exceeds the value of your home.
Can a family member be added to a reverse mortgage?
Other family members such as your children even though they may be adults they are not eligible to apply for a reverse mortgage or be on title of your reverse mortgage if they do not meet the minimum age requirement of 55. If you happen to pass away and your property has a Reverse Mortgage on it and you have left your property to other family members, they will not be able to assume the Reverse Mortgage as they will not meet the required criteria at this time.
Can you lose your home with a reverse mortgage?
It is almost impossible to lose your home with a reverse mortgage since you borrow against your home’s equity and repay the loan with the proceeds of the sale. There aren’t many ways to lose ownership of a reverse mortgage because you still own your house, unless you fail to preserve three primary components of your home’s legal status.
Are there Closing Costs on a Reverse Mortgage?
Yes, there are closing costs on a reverse mortgage just like there are closing costs on a traditional mortgage or on a line of credit. The reason for this is the lender requires the borrower to have independent legal advice also known as ILA for their benefit and protection. This cost can vary depending on your location and the lawyer you choose, and the fee is approximately $500-$1000.
Who is eligible for a Reverse Mortgage?
You are eligible for a Reverse Mortgage in Canada if you are a Canadian homeowner and at least 55 years old. If you have a spouse, the spouse must also be 55 years or older to be eligible to become a co-borrower. However, more parameters are considered in order to qualify.
What Happens if I Die with a Reverse Mortgage?
With a traditional mortgage, either the home is sold and the outstanding mortgage balance is paid off with the sale proceeds or the home is left to the estate and it is dealt with there. The same goes for a Reverse Mortgage. If you pass away with a Reverse Mortgage the home is sold and the Reverse Mortgage is paid out from the sale proceeds.
With a reverse mortgage who retains the title to the home?
A reverse mortgage allows the homeowner to keep their house as long as they pay their property taxes, maintain it, and keep it insured. You will be responsible for the valuation fees, legal fees, and other costs associated with the sale of the land. The borrower retains ownership of the land, including any unused equity, and is never required to leave.
Is Chip Reverse Mortgage A Good Idea?
The CHIP Reverse Mortgage allows you to access up to 55% of the value of your primary home in tax-free cash, which you can use to make the down payment on your cottage. Depending on how much equity you have built up in your home and how much your home is worth, you may be able to use this money to pay for a sizeable portion of the property in one go.
If you would like more information or a free consultation to see if a Reverse Mortgage is a fit for you, you can contact me below, and as a Certified Reverse Mortgage Specialist I would be more than happy to review your financing options with you and provide you with Expert Advice to Guide You Home.
