What is a Reverse Mortgage? - Check out my video!!
What is a Reverse Mortgage?
A reverse mortgage is a loan secured against the value of your home. It is designed exclusively for homeowners
aged 55 years and older. It enables you to convert up to 55% of your home's value into tax-free cash. Repayment
of the loan is only required once you choose to move sell or the sole homeowner passes.
Monthly payments are optional, but you can also choose the no payment option. Reverse mortgages are growing in popularity for a variety of reasons and have increased by over 28% annually.
Benefits:
• As home values have increased, you can unlock the key to equity
• No monthly payments
• Improve your cash flow
Uses of a Reverse Mortgage:
• Increase your monthly cash flow
• Modify your current home or layout to suit your needs
• Renovations to prepare your home for sale to increase the price
• Be able to “Right Size” your home as opposed to downsizing
• Purchase a rental property or a cottage property
• Pay off debt/mortgage/car loan
• Create wealth
• Be able to stay in your home until you are ready to move
• Complete your bucket list
• Travel to see family or friends
• Provide in home health care or services for yourself of a loved one
• Provide a living inheritance to your children or grandchildren
• Help your kids or grandkids purchase a home
What Factors Are Assessed to Qualify:
• Your age
• Location of your home
• Type of home (detached, condo, townhouse, ect)
• Appraised value of your home
• Condition of your home
• Your home equity
True and False:
• You no longer own your home – False
• You no longer will earn equity – False
• If your spouse dies, you have to move – False
• The money I take from my home with be taxable – False
• You end up owing more than your house is worth - False
• I need independent legal advice – True
• I don’t have to pay tax on the money received – True
• I cannot be evicted if I opt out of monthly payments – True
• I do not need mortgage insurance with a reverse Mortgage – True
• I do not need to make any payments on the mortgage - True
Requirements:
• You must be a Canadian citizen
• Be aged 55 years or older (if you have a spouse, both of you must
be at least 55 years old to be eligible)
Fees Involved:
• An appraisal fee
• Independent Legal Advice Fee
• Lender set up fee
DID YOU KNOW THAT IN 2021, 25% OF FIRST TIME HOME BUYERS RECEIVED GIFTED FUNDS FOR A DOWN PAYMENT IN THE 416 AREA CODE.
To Learn more about Reverse Mortgages and if it is right for you, please reach out so we can discuss the benefits of unlocking equity in your home.