More breathing room because there isn't monthly mortgage payments
Get to stay in the home you love
Get to help family sooner (not later)
Pull Tax-free cash that typically doesn't affect your OAS or CPP
Pay off debt that has been building up
WHAT IS A REVERSE MORTGAGE?
- For Canadian's over 55+
- Access equity from your home
- No monthly payments, interest added to the loan
- Loan is repaid when home is sold or you don't live there
Accessing Equity
A reverse mortgage allows Canadian homeowners age 55 and older to access some of the equity in their home as tax-free cash.
Unlike a traditional mortgage, no regular monthly mortgage payments are required while you live in the home. Interest is added to the loan over time, and the balance is repaid when the home is sold or when the homeowner no longer lives there.
You remain the owner of your home and stay on title.
Homeowners may be able to access up to about 55% of their home’s value, depending on factors such as age, location, and the property.
Buying a Home
Many people are surprised to learn that a reverse mortgage can also be used to purchase a home.
This option allows homeowners to use a larger down payment and finance the rest with a reverse mortgage, meaning no required monthly mortgage payments while living in the home.
It can be a helpful option for homeowners who want to downsize, move closer to family, or purchase a home that better fits their needs in retirement, while keeping more of their savings available.
The loan is repaid when the home is sold or when the homeowner no longer lives there.
TAX Free!
Funds are received as a loan rather than income,
Typically do not affect benefits such as Old Age Security (OAS) or Canada Pension Program (CPP)
Questions your children may ask
Is mom or dad protected?
Yes. Homeowners are required to receive independent legal advice before completing the process. Your children can also be apart of the process and ask questions.
Will you have to make monthly mortgage payments?
No regular mortgage payments are required while you live in the home.
Can you move or sell your home later? Yes. You can sell your home or move at any time. The reverse mortgage is repaid when the home is sold.
Could you end up owing more than the home is worth?
Canadian reverse mortgages include protections designed to ensure the loan does not exceed the home's value, as long as the loan conditions are met. Will you lose your home? No. You remain the owner of your home and stay on title.
Will there be anything left for the family?
When the home is eventually sold, the reverse mortgage and accumulated interest are repaid. Any remaining equity belongs to the homeowner or their estate.
Will you lose your home?
No. You remain the owner of your home and stay on title.
When a Reverse Mortgage May Not Be the Right Fit:
You plan to move in the near future
You want to preserve as much home equity as possible for inheritance
Another option like refinancing or a HELOC may work better
A reverse mortgage is not the right solution for everyone. I help clients compare it with other options like refinancing, Home Equity Lines of Credits (HELOC), or downsizing so they can make the best decision for their situation.
See if a Reverse Mortgage is right for you
Call me directly 416-894-4047
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