A Solution to Get Cash
What is Reverse Mortgage?
The reverse mortgage is a strategy for people who are 55 years or older and already own a property. Although it is not very well known, the reverse mortgage has existed for over 25 years now. This mortgage solution comes from the Canadian Home Income Program (CHIP) and is offered by various banking institutions. Through it, homeowners can free up cash to carry out projects or fulfill obligations such as renovations, health expenses, travel or paying off debt.
By definition, the reverse mortgage is a loan secured by the net worth of a property. This mortgage product provides up to 55% of the asset’s market value.
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How Much Did you get?
Why Use the Reverse Mortgage?
- You need cash as a result of a misfortunate situation that disturbs your plans (health problem, job loss, etc.)
- You want to remain the owner of your home and do not want to sell or relocate.
- You want to use the equity of your home to repay your mortgage.
- You do not want to pay off tax on the money received.
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How does it work?
What to consider before taking into account a reverse mortgage?
- The interest rate on this mortgage is generally higher. Depending on the market, it can be in the range of 5-10%.
- The amount to be borrowed varies according to the value of the house, your age and the location of the property. At the latest, you must repay the loan at the time of the death of the last spouse, your move or the sale of the residence.
- With the reverse mortgage, you protect yourself from the risk of losing your home.
- The amount to be refunded does not exceed the value of your property, so your heirs are protected.
- No proof of income is required to obtain a reverse mortgage.
How to Obtain a Reverse Mortgage?
As mentioned above, this mortgage solution is available only if you own a property. Your spouse and you must be 55 years of age or over. The property must also have equity to pay the remaining mortgage payments. To find out all the criteria and find out if you qualify for a reverse mortgage, visit one of our mortgage brokers.
If you meet the requirements, you will probably get this loan. However, before moving forward, our mortgage brokers will thoroughly analyze your situation and the options available to you. They will explain every detail of the reverse mortgage and the steps to follow to get it. If the reverse mortgage is for you, our brokers will assist you and take care of everything for you. You will have peace of mind thanks to their excellent service!
What It Is, How Much You Can Get, And Who Offers
How Much Can You Borrow With A Canadian Reverse Mortgage?
A reverse mortgage is a type of loan that allows homeowners to tap into the equity they have in their homes. It works similar to a traditional mortgage, except that you don’t need to make monthly payments until you move, sell your home, or pass away.
In order to qualify for a reverse mortgage in Canada, you must be at least 55 years old and own your home outright. If you’re married or living with someone who is on title (your spouse), they must also be at least 55 years old. The only time you’ll have to make payments is if you move out of the home or pass away.
If you want to apply for a reverse mortgage from HomeEquity Bank or Equitable Bank, there are some things you should know:
Your home must have at least 50% equity when applying for a reverse mortgage with either lender.
You will have to pay any property taxes or insurance premiums in effect as well as keep your home in good condition in order to keep your loan in good standing.
