What is a Reverse Mortgage?

Can you believe that Reverse mortgages have been in Canada since 1986.

With more Canadians reaching retirement age, reverse mortgages are becoming one of the most popular routes for Canadians to access the equity in their home.

A reverse mortgage is specifically designed for people 55 and over. It is a loan that allows you to convert a portion of the equity in your home into 100% tax free cash, without having to sell or move. The maximum amount you will be able to borrow will depend on your age, your home’s appraised value and your lender. In fact, the older you are, the more value you have in your home, the more money you could qualify for. 

Lending practices are conservative. This is a safeguard to ensure that you, the homeowner, will retain the equity remaining when the home is sold.

The main advantage of a reverse mortgage is the fact that you do not have to make payments.

This is an important factor if you are living on a fixed income and are having difficulties making ends meet. You could use a reverse mortgage to supplement your income on a monthly or quarterly basis. The money from a reverse mortgage is 100% tax free. It does not affect any government benefits such as Old Age Security, Canada Pension Plan or Guaranteed Income Supplement.

There are other reasons you may wish to use a reverse mortgage: travel, early inheritance for your kids or grandkids, medical bills, renovations. The money is yours to do with as you please.

I can tailor and customize your solution to your needs. Do you want no payments or are you comfortable making a small payment? What is the ideal situation for you? Let me know. I will do my best for you.