A REVERSE MORTGAGE IS:
Let’s start first with the basics about a Reverse Mortgages in Canada. If you are 55 years or older and own an eligible home or condo you can borrow up to 50% of your home’s value based on strict lending criteria.
Funding Available for Reverse Mortgage Alternatives $10,000 to $2,500,000 & More.
DOES A REVERSE MORTGAGE WORK FOR ALL SENIORS?
Not all seniors qualify for a reverse mortgage or qualify for enough money due to some of the reasons we will mention further on this web page. If you find that a reverse mortgage does not work for you call us today to discuss alternatives that might be right for you.
WHAT ARE REVERSE MORTGAGES USED FOR:
A Reverse Mortgage can be used to:
- supplement retirement income
- Help out other members of the family
- Home Renovations
- Pay off other bills
- Travel recreation etc
- Purchase of other investments
ALTERNITIVES TO A REVERSE MORTGAGE:
The most affordable option instead of applying for a CHIP reverse mortgage would be a Home Equity LOC. The problem most seniors face is qualify for these sorts of mortgage due to their limited income.
HOME EQUITY LOAN:
Another Option is a HOME EQUITY LOAN; this is through the private mortgage market. There is no income or credit issues here your home equity approves you up to 75% in major centers of the value of your home. You are required to make payments, but they have no restrictions on age, principle residence or secondary residence, homes location or size of property. In essence this is a pure equity style loan.
PRO/CON REVERSE MORTGAGE:
- No Financial income is required to qualify
- Competitive Interest Rates compared to conventional mortgages
- No restrictions on the money you qualify for. (do with as you please)
- You remain In your home until your death or you payout the mortgage
- Flexible payment options, ie. One lump sum payment or multiple advances or combinations of the two
- Your money is tax fee because it is a requirement that this is your personal residence.
- The Money you receive does not impact Old Age Security (OAS) or Guaranteed Income Supplements (GIS)
- You can stay in the home as long as you want you are never asked to move. You must maintain your property and stay up to day with property taxes, fire insurance and condo or maintenance fees
- If the property continues to go up in value the remaining equity is yours
- No Payments are required rather the loan grows and in some cases eliminates the equity left in your home
- The heirs of your estate will never have to pay more than the fair market value of the home at the time of sale
- The very conservative loan to value of 40% may not allow you to qualify under the reverse mortgages. In this case we have some options that might be right for you.
- If you decide to sell during the term of the mortgage a rather large penalty will apply
- The reverse mortgage is not portable to other family members if you were looking to pass it to heirs.
- If you have a younger spouse or children or other people living in the home all members must be over 55years of age to qualify.
- The money advanced may only be enough to live on for a limited time and without the property’s value going up significantly you may run out of money before you can refinance again
- The money you borrow grows and can significantly affect your ability to refinance due to the debt growing beyond the equity required to refinance
Frequently Asked Questions:[learn-more caption="Can I get a second mortgage behind a reverse mortgage?"]Yes, we have access to lenders that will advance mortgage behind CHIP Reverse Mortgages.[/learn-more] [learn-more caption="Are there alternative lenders without income verification that will lend more than a reverse mortgage?"] Yes, we have lenders that will lend up to 75% of the appraised value of the home. More money but payments are required. In these cases clients usually borrow the money and make payments with this money.[/learn-more]
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