You’ve worked hard to become a homeowner and if, you’re like most 55+ Canadians, much of your net worth consists of the equity in your home.
The value of your home will have increased over the years, and while this is good news, you really can’t access that equity. And what if your pension does not cover all your bills each month? A Reverse Mortgage may allow you to convert a portion of that equity into 100% tax-free cash to supplement your income. The money you receive can be in one lump sum, single advances or recurring advances and does not affect any government benefits you may be receiving, including but not limited to Old-Age Security (OAS) or Guaranteed Income Supplement (GIS). You will retain ownership and control of your home with no monthly mortgage payments. Repayment is only required once you choose to move or sell your home.
All you have to do is maintain your property and pay the taxes and insurance. As you discuss this with your family, you’ll be better prepared to make the decision that’s best for you.
You can use the money for whatever you wish, for example:
- Cash flow
- Health care expenses
- Pay off existing debt
- Home repairs and/or improvements
- College tuition for your children or grandchildren
The choice is yours.
The Reverse Mortgages we offer are backed by some of the most reputable and stable banking institutions in Canada. Like other banks in Canada they are strictly regulated by the Canadian government. And just like other banks you will be charged interest on your mortgage. Because no payments are required until the mortgage is due, the interest rate on a reverse mortgage is slightly higher than a regular mortgage.
To qualify for a Reverse Mortgage in Canada
- You must be 55 or over (if you have a spouse, both of you must be 55+ to be eligible)
- Canadian Homeowner
- Your home is your primary residence
- Appraised home value of $150,000 or more
The following factors will be assessed
- Location of your home
- Type of home (e.g. detached, condo, townhouse etc.)
- Appraised value of your home
- The condition of your home
- Your home equity