Is a Reverse Mortgage Right For You?
Changing the Financial Equation
If you’re like many other 55+ Canadians, much of what you own fits into two categories—the equity in your home and the money you’ve saved. Chances are, the value of your home has grown over the years and makes up a good portion of your net worth. While having a home that has built value is a positive, you typically can’t spend that value unless you sell it. And that’s something many homeowners simply do not want to do.
What is a reverse mortgage?
A Reverse Mortgage is a simple way to turn a portion of your hard-earned home equity into tax-free cash— with no monthly payments required.
That’s where a Reverse Mortgage comes in.
A Reverse Mortgage lets you change the home equity and savings balance by turning some of your equity into cash.
Unlike many mortgage-based financial products, you’re not obligated to qualify or to make any payments until you choose to move or sell. You can:
- Pay off existing mortgage or other debt
- Supplement your income
- Help family or yourself buy another property
- Cover unexpected expenses
- Renovate or refurbish your home
- Travel more often
What makes this program work is that participants may access up to 55-59% of the value of their homes, which ensures you have access to the cash you want and also the security you need.
Who can qualify?
• Canadian homeowner
• Age 55 or older
• Own your home
• It’s your primary residence
You’re In Control with a Reverse Mortgage
You worked hard to become a homeowner, and it’s important that you keep it that way. With a Reverse Mortgage, you always maintain control of your home*. In other words, you will never be forced to sell or move as a result of changing home values or earning power (remember, there are no payments). And the amount that you or your estate eventually has to repay will never exceed the fair market value of your home at the time it is sold. There’s no reason your home should ever be a burden to you or your family.
* As long as you keep your property in good maintenance, pay your property taxes and property insurance, and your property is not in default.
Your Money, Your Way
A Reverse Mortgage may be structured to ensure you get the money you need in precisely the way you want it. Whether you wish to receive your money over time or in one lump sum, the choice is yours. Likewise, if at any time you would like to repay the principal and interest in full or switch to paying interest on an annual or monthly basis, you can do that too (prepayment charges may apply).
You Have Earned Your Home Equity
You have the right to access the equity in your own home, regardless of your current income, health, or credit score.
By Canadians, For Canadians
A Reverse Mortgage is a Canadian financial solution that benefits Canadian homeowners. There are currently 2 lenders in Canada offering “prime” Reverse Mortgage products, each with 35 & 50 years mortgage lending experience.
Contact your favourite Mortgage Broker if you’d like to explore a reverse mortgage for an existing property or the purchase of a new residence!
Candace Perko,
Mortgage Broker
