Frequently Asked Questions
Will the bank own my home?
No. You retain title and maintain ownership and full control of your home. You will never be asked to move or sell, provided you pay; property taxes and home insurance and maintain your property in good condition. You and your spouse can live in your home for as long as you wish.
How much do I qualify for?
The amount you will qualify for depends on several things, such as your age, the age of your spouse, location, type of property, and a current appraised value.
How do I receive my funds?
You can choose to take the mortgage proceeds upfront as a one-time advance, or you can take a large sum upfront and the remaining funds as recurring advances scheduled over several years.
Can I use a reverse mortgage to pay off my existing mortgage?
Yes. This is one of the most common uses of a reverse mortgage. The first step is to pay off your existing mortgage along with any other secured debt. The remaining balance is yours to do with as you wish.
Do I have to make payments?
There are no monthly payments required while you are living in your home. If you choose to do so, you have the option to make interest payments only. This will reduce the amount owing at the end of your reverse mortgage.
Will this affect my government benefits?
No. A reverse mortgage will not affect any government benefits you may be receiving.
Do I keep the equity left in my home?
You will keep all the remaining equity in your home. 99% of homeowners have money left over when their loan is repaid. And on average, the amount left over is more than 50% of the value of the home.
Would a Home Equity Line of Credit (HELOC) or even downsizing be a better option?
A Home Equity Line of Credit (HELOC) is a line of credit that is registered against your home. If you cannot make the monthly payments, you could be at risk of losing your home. A HELOC is a good short-term option for people who can pay the interest and loan back relatively soon. A reverse mortgage is a long-term financial solution requiring no monthly payments.
While downsizing may be an option the expenses can add up. Legal fees, land transfer taxes, renovations, commissions, the list goes on. You may also have to move away from friends, perhaps family, and the neighbourhood you love.