Reverse Mortgage

1. What is Reverse Mortgage?

• A Reverse Mortgage is a way for Canadian homeowners 55 or older to turn up to 55% of the value of their homes into tax-free cash. It allows you to retire safely and securely in the home you love.
• Reverse Mortgage is a loan secured against the value of the home. Unlike a traditional home equity line of credit or a conventional mortgage, there are no monthly mortgage payments for as long as you live in your home.
• The home should remain your primary residence. You simply pay your property taxes, home insurance, heat and hydro and maintain your home in good repair.

2. Why Choose Reverse Mortgage?

• Get up to 55% of the value of your home
• Stay in your home
• Maintain full ownership and control
• Free yourself from monthly mortgage payments until you choose to move or sell
• Receive your money tax-free
• You have the option to make advance interest payments

3. What you can do with funds from your Reverse Mortgage

• Pay off debts and mortgages currently on your home
• Renovate your home
• Take care of unexpected expenses
• Help those you love
• Enjoy your retirement
• Travel
• Purchase a vacation property

REVERSE MORTGAGE – Frequently Asked Questions

1. How much money can I get from a Reverse Mortgage?

The amount that you are eligible to receive depends on the age of the youngest applicant on title; the value of your home and the type and location of your property.

2. Do I have to make any payments?

No, there are no mortgage payments required until you choose to move or sell your home.

You do, however, have the option of making advance interest payments to help reduce the amount owing at the end of your reverse mortgage.

3. Can I lose my home?

You will remain the owner of your home. We will never ask you to move or sell, provided you pay your property taxes and home insurance, and keep your property well maintained.

4. How does a reverse mortgage compare to a home equity line of credit?

A home equity line of credit is a good option for some people. It requires you to make regular monthly payments. Before getting one, you will have to qualify based on income and credit history. You will also have to re-qualify as time goes on and you can lose it if you mess up your credit.

5. What if I already have a mortgage?

We will first pay off your existing mortgage, along with any other secured debt, and then give you the remaining funds to do whatever you want.

6. Do I keep the equity left in the home?

Yes! In our 30 years of experience, over 99% of homeowners have money left over when their Reverse Mortgage is repaid. And, on average, the amount left over is more than 50% of the value of the home. This is due to the conservative limit (up to 55%) we put on the amount of reverse mortgage taken initially and the fact that most homes continue to increase in value over time.

7. What about downsizing?

Downsizing is certainly an option but expenses can really add up with renovations, commissions, legal fees, and land transfer taxes. Often, you have to move away from the neighborhood you’re accustomed to in order to purchase a home that will leave you with some extra cash for retirement.

8. Will my Government Benefits be affected?

No, Reverse Mortgage will not affect any Government Benefits you’re currently receiving or may receive in the future; such as Old Age Security, Canada Pension, or Guaranteed Income Supplement.