Security in Retirement
A reverse mortgage is tailored to help Canadians aged 55 and up who want to access the equity they have built up in their home. Once approved, applicants receive their loan as tax-free cash. There are no monthly mortgage payments with a reverse mortgage, but the owner is still required to pay property taxes, insurance and maintenance costs. Once the owner sells, moves out or passes away repayment of the loan is due.
How does it work?
In order to qualify for a reverse mortgage, applicants must be a minimum of 55 years old, own their home, and have adequate equity in that home. The size of your reverse mortgage will depend on your age and the appraised value of your property. The amount of tax-free cash you qualify for is based on your age and the appraised value of your home.
What are the benefits?
There are many reasons thousands of Canadians have opted for a reverse mortgage.
- Your reverse mortgage is yours to use as you see fit.
- You choose how and when you would like to receive your funds: all at once or in staggered payments.
- There are no monthly mortgage payments until you move, sell, or pass away.
- You get to stay in your home and retain the title to your property.
- Neither you or your heirs are responsible for any amount of the mortgage that surpasses the value of your home (so long as you maintain your insurance and property taxes.)
Is there a drawback?
- The balance and the interest on the loan increase over time.
- Because there are no monthly payments on a reverse mortgage interest rates can be high.
How do I get started?
- Contact Your Calgary Mortgage Broker to discuss different options and lenders.
- We will send out applications to any and all lenders you’d like to do business with.
- You will have your house appraised and fill out associated paperwork.
- The final details will be reviewed by a lawyer of your choosing.
- You will receive your tax-free money!