Reverse Mortgages
Whether you’re concerned about covering day-to-day expenses or want to enjoy your retirement to the fullest, a reverse mortgage offers a flexible and beneficial solution.
Leverage the equity you’ve built up
No Monthly Mortgage Payments
Supplement Your Retirement Income
No need to downsize your home or move out
Get a quick approval in no time
What is a Reverse Mortgage?
A reverse mortgage is a type of loan designed specifically for homeowners who are aged 55 and older. This mortgage allows homeowners to convert a portion of their home equity into tax free cash without selling their home or taking out monthly mortgage payments.
This is a unique kind of mortgage loan because, unlike traditional mortgages where you pay the lender every month, a reverse mortgage pays you. This means you can get extra money without having to sell your house or make regular loan payments.
How Does a Reverse Mortgages Work?
As retirement approaches, financial stability is everyone’s concern. Many homeowners explore their options and frequently find themselves asking, “How reverse mortgages work?” Turnedaway.ca is here to provide you with all the answers and guide you through unlocking the potential of your home’s value.
Eligibility
Borrowers must be at least 55 years old to qualify for this mortgage. If the home is co-owned, both parties need to meet the age requirement.
Loan Amount
The lender determines the maximum amount you can borrow based on factors like your age, the appraised value of your home, and the location of your property.
No Monthly Payments
Unlike a traditional mortgage, you’re not required to make monthly payments on a reverse mortgage. Instead, the interest on the loan accrues over time and is added to the outstanding balance.
Repayment Options
The loan is repaid when you sell your home, move out, or pass away. The proceeds from the sale are used to repay the loan, and any remaining equity goes to you or your heirs.
Benefits of Reverse Mortgages in Canada
Reverse mortgages offer a host of benefits for elderly homeowners in Canada. Here’s why it’s a smart choice:
Financial Freedom
Use the equity you’ve built up over the years to cover living expenses, medical bills, or to simply enjoy life.
Stay in Your Home
No need to downsize or move out. Stay in the place where you’ve built memories.
Supplement Your Retirement Income
Boost your pension and investment income, improving your quality of life.
Reduce Financial Stress
With no monthly mortgage payments, take a deep breath and relax.
Take the first step towards financial freedom. Contact us today to learn more about reverse mortgages in Canada and take control of your retirement finances.
No More Frustration From “NO’s”!
We can help you connect with a lender that best fits your needs and find you with the perfect reverse mortgage option. Talk to a mortgage broker now!
Repaying your Reverse Mortgage
The truth is, you don’t have to make any payments on a reverse mortgage until you decide to move out or sell your home. This means you can enjoy the financial benefits without monthly loan repayments. When the time comes to repay, typically, the amount you owe will be the total of the cash you received plus any interest that has accrued. It’s important to know that the amount you owe cannot exceed the value of your home, ensuring financial safety for you or your heirs.
At TurnedAway.ca, we’re committed to helping you navigate through these details, making sure your reverse mortgage experience is stress-free and beneficial.
Why Choose TurnedAway.ca
Our team of experts is here to guide you every step of the way. We pride ourselves on our transparent, personalized services tailored to meet your unique needs.
- With years of experience in the Canadian mortgage market
- Provide personalized guidance to your unique situation
- Support and assistance throughout the process
- Transparency on every step of the way
- Your satisfaction is our top priority
Take the first step towards financial freedom. Contact us today to check your eligibility!
Reverse Mortgage Frequently Asked Questions:
How do I receive the funds from a reverse mortgage?
You can receive the funds as a lump sum, regular monthly payments, or a combination of both. The method of disbursement can be tailored to your financial needs.
Are there any restrictions on how I can use the money from a reverse mortgage?
No, there are no restrictions on how you can use the funds. Homeowners commonly use the money to cover living expenses, pay off existing debts, fund home renovations, or support family members.
Do I still own my home if I take out a reverse mortgage?
Yes, you retain ownership of your home. You are still responsible for maintaining the home, paying property taxes, and homeowners’ insurance.
What happens if the value of my home decreases?
If the value of your home decreases, you are protected under the terms of the reverse mortgage. You will never owe more than the fair market value of your home at the time it is sold, even if the loan balance exceeds this amount.
When does the reverse mortgage need to be repaid?
The loan needs to be repaid when you sell the home, move out permanently, or pass away. At that time, the loan balance, including interest and fees, will be due.
What are the costs associated with a reverse mortgage?
Costs can include interest, closing costs, appraisal fees, and administration fees. It is important to discuss all potential costs with your lender before proceeding.
What are the alternatives to a reverse mortgage?
Alternatives include downsizing, obtaining a home equity line of credit (HELOC), or selling and renting. Each option has its own pros and cons and should be considered based on individual circumstances.