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27 Sep

REVERSE MORTGAGES

Mortgage Tips

Posted by: Satvinder Chane

 

REVERSE MORTGAGES IN CANADA

Reverse mortgages can help Canadians 55+ access the equity in their home, tax-free.

Canadian reverse mortgages are an increasingly popular borrowing option for homeowners 55+.

It becomes a great alternative to selling your home, and may be a better-suited lending solution when compared to a second mortgage or a line of credit. Homeowners can retire stress-free, without the worry of monthly payments. Plus, funds are tax free and don’t impact your OAS or CPP.

Here are some key points of reverse mortgages.

  • Eligibility amount is up to 55% of your home’s value. Conservative lending amount serves two purposes: Firstly, the amount you qualify for increases with age as the cost of living is expected to increase and other sources of retirement income deplete. Secondly,  no Negative Equity Guarantee which ensures the loan balance doesn’t exceed the fair market value of your home.
  • Closing & administrative closing costs are there. There are also standard legal and appraisal fees payable to third parties, as with any mortgage.
  • No monthly payments are required.

Tens of thousands of Canadians are already using the funds from a reverse mortgage to supplement their monthly income, pay off debt, travel, purchase a second property and more. To see how a reverse mortgage could work for you, contact you me at 416 357 5756.