If you pass away with a Reverse Mortgage the home is sold and the Reverse Mortgage is paid out from the sale proceeds. If you have a surviving spouse, they remain in the home until they decide to move or they pass away, at which time the property is sold and the balance of the Reverse Mortgage is paid off with the sale proceeds.
Canadian Seniors are enjoying their retirement with less stress and more financial freedom with a Reverse Mortgage. But the question that frequently asked is ‘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.
If you have a surviving spouse, they remain in the home until they decide to move or they pass away, at which time the property is sold and the balance of the Reverse Mortgage is paid off with the sale proceeds.
There are 2 lenders in Canada offering a Reverse Mortgage product. Both lenders are federally registered Schedule 1 banks so customers are rest assured their asset is protected.
The Reverse Mortgage lenders do not take title of the home, that always remains in the homeowners name.
There are 3 things the homeowner must agree to when they carry a Reverse Mortgage. They must pay their property taxes, maintain the property in satisfactory condition and carry the proper insurance for the property.
If you would like more information and a Free consultation with no commitment on your part please contact me.
Who is not eligible for a reverse mortgage?
You are not eligible for a reverse mortgage if you do not meet the minimum age requirement of 55 years of age, and if you do not own your principle residence with a fair amount of equity in it you will not be eligible for reverse mortgage. It doesn’t mean you won’t ever be eligible just means at this current time you are not eligible.
What Do I Need To See A Mortgage Advisor?
This varies depending on the individual policies and procedures. For us, the best place to start is with a 20 minute phone call. You do not need anything. If we get to it, the most skill testing question we will be asking you is what is your SIN. The rest of the information you should have available at the tip of your tongue. During this initial call we are often able to address 99% of your questions or concerns.
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.
Is It Better To Get A Mortgage From A Bank Or Mortgage Company?
This is a great question – is it better to get a mortgage from a bank or mortgage company. There are benefits and short comings with any mortgage product, be it from a mortgage company, or from a bank. The key is, understanding your situation. Being crystal clear on your goals, not only for the short term, but medium term and also the long term. Once you are crystal clear on your goals, you also want understand your demographics.
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.
What Makes A Good Mortgage Broker?
There are a lot of qualities that can be mentioned here, to determine what makes a good mortgage broker. Like most of these questions, context is important. Above all, the sign of a good mortgage broker, is the mortgage broker who listens to you and tries to understand your goals, and your needs. A good broker, also takes the time to explain his or her role, and set expectations. A good broker will be direct with you, never beat around the bush.
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.
How A Mortgage Broker Can Help?
A mortgage broker is a legally approved licensed specialist who has connections with various lenders and mortgage products. They have the knowledge of many types of mortgage products and rates and offer you a wide variety of options to choose from. You can compare between various lenders, rates and other factors and choose wisely.
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.