Reverse mortgages can unlock the value in your home so that you can use it to improve your retirement years. A reverse mortgage is a loan that is secured against the current value of your home.
You can access the equity in your property without having to sell it or move. A reverse mortgage allows you to stay in the neighbourhood and community you’ve lived in for as long as you’d like – worry-free.
Reverse mortgages, also referred to as “equity release” mortgages or “CHIP” (Canadian Home Income Plan), can be a great option for many borrowers.
Our Mortgage Brokers Network experts can walk you through the process. We have more than 30 years of experience helping home owners who need access to equity.
You don’t have to worry about your credit score or income, our network of trusted lenders will work with even the most difficult circumstances to get you approved for a loan.
If you’d like to apply for a reverse mortgage there are some basic criteria to meet. First, you must own your home. If you own your home jointly with a spouse you must both be listed when you apply. Second, you (and your spouse) must both be at least 55 years of age at the time of your application.
In addition to the aforementioned requirements, you can only apply for a reverse mortgage on your primary residence and this means that you must live in the home for at least 6 months every year. Your loan must be secured against this property and cannot be secured against a cottage or vacation home.
Finally, any outstanding liens or first mortgages must be paid off. If you’ve already got a mortgage on your home your new equity release mortgage can help with this. You can use a portion of your new loan to pay off any existing secured debt(s).
You can use up to 55% of your home’s current value to improve your quality of life. When you are approved for a reverse mortgage you can opt to take the money as a one-time lump sum or take some up front and draw from the rest over time. Our lenders are flexible and offer different options. How you choose to receive your funding should make sense with your budget and needs. We can review any restrictions or fees with you during the application process so that you can weight the pros and cons.
Once you’ve paid off any existing loans secured against your property you can use your reverse mortgage for a variety of different purposes including:
It’s also important to note that by taking a reverse mortgage, you may not be able to borrow against any additional home equity via a line of credit (HELOC) or second mortgage. [link to HELOC page]
We can give you an answer quickly. You won’t have to wait to be approved for your loan. Our brokers work fast and our lenders work with everyone. We’ll let you know how much you can qualify for. If you’ve got equity in your home to leverage, we’ll help you get access to it as soon as possible.
The best part about a reverse mortgage – it’s tax-free money and you don’t have to make regular payments. You can increase your cash-flow without having to worry about owing more to Canada Revenue Agency as a result. You don’t have to pay back your reverse mortgage unless you default on your terms or no longer live in the home.
While you don’t have to make monthly payments to pay back your reverse mortgage, you do have the option of paying off the principal balance and interest in full at any time. You may be charged a fee to pay off your loan early. You will be charged interest on your loan until it is paid in full and this will increase the loan amount over time. If you sell your home or move out, you’ll have to repay the loan in full. It is also possible to default on a reverse mortgage.
Defaulting can happen if you are found to have been dishonest in your application, have used funds to do something illegal, have caused your home to be devalued or have broken any of the terms/rules set out by your lender in your contract.
Additional reverse mortgage costs may include a higher interest rate, set up fees, home appraisal fees, legal fees and prepayment penalties if the loan is paid off early. We can help you understand all of the associated costs and compare them to other equity financing options before you decide to take on a reverse mortgage.
Our mortgage brokers can shop around for you and help you explore your options. We can help you compare costs and review alternative solutions. A mortgage broker can offer the advice you need and help you understand how a reverse mortgage works. You may also want to consult with family members and your financial advisor.
Your reverse mortgage will allow you to take control of your life, maintain ownership of your home and stay where you’re most comfortable during your retirement years. With our flexible lenders, your credit score or current income will not be scrutinized in the same way that it would be with other lenders or types of loans.
Let us help you relieve financial stress, pay off debt, and spend your golden years in comfort. Discover the freedom our 30 years of experience can offer you, contact us today.
|Term||Posted Rate||Our Rate||Claim This Rate|
|Home Equity Line of Credit||Prime +1%||Prime +.50%||Claim Rate|
|Fixed 1 Year||4.50%||3.09%||Claim Rate|
|Fixed 2 Year||4.65%||3.39%||Claim Rate|
|Fixed 3 Year||4.65%||3.79%||Claim Rate|
|Fixed 4 Year||4.65%||3.99%||Claim Rate|
|Fixed 5 Year||4.89%||4.14%||Claim Rate|
|Variable 5 Year||5.80%||3.2% (prime -.95%) Net Rate 2.25%||Claim Rate|
|Fixed 10 Year||5.90%||4.54%||Claim Rate|