Are you a home owner and over 55 years old? Looking to find a way to get that equity of your home to improve your life?
A Reverse Mortgage can be the very thing you need:
Access Up to 55% of your home’s value in tax-free cash!
Stay in and keep the home you love
No monthly mortgage payments
A convenient way to help yourself live better
With historically low interest rates and increasing costs across the board, the demand for homeowners to get equity out of their home has exploded. If you are over 55 years old, you may be like many others who are turning to learn where you can do this. Below is some helpful information to help you get started. Don’t get hung up on rates, speak to a broker to help you better with your unique situation.
What is a Reverse Mortgage?
According to Wikipedia, a reverse mortgage is “is a mortgage loan, usually secured by a residential property, that enables the borrower to access the unencumbered value of the property.” Said another way, a loan to extract the value of your home, tax-free, without monthly payment or ever having to leave your home.
Why Get a Reverse Mortgage?
Eligible applicants typically take out a reverse mortgage to boost their retirement income, pay for home renovations, pay for health care expenses or to help them pay off debt while staying in their current home. Regardless of circumstance, you can live better and, on your terms, without ever having to move out of the home you love! Reasons are not limited to:
Retirement planning
Renovations
Debt consolidation
Improve Cash Flow
Health Care or other Expenses
Costs
You may be wondering if there a lot of costs. Are there upfront costs or costs built into the mortgage or at the end and when is that anyway? A major benefit if a reverse mortgage is that a reverse mortgage has many of the same costs as a traditional mortgage in, like an appraisal fee, legal fees and an administrative fee (there is a chart below that shows more details). Their interests rates are a little higher than traditional lending, but give you access as a homeowners with tax-free cash, upfront, without the requirement of monthly mortgage payments! Working with a broker is free.
Where Can I get A Reverse Mortgage?
Currently, there are two main companies that provide reverse mortgages in Canada and they each have their own approach, niche, fees, structure, and different reasons you may want to get a reverse mortgage with them. Just like traditional mortgages, getting a mortgage can be sometimes done directly with the Bank and some you can do it through a broker. At Home Equity Bank you can go direct or use a broker, but you will need a broker to get a reverse mortgage from Equitable Bank.
Here is a quick comparison of some of the key aspects and differences between these two companies:
Again, note that these stated set-up fees are subject to change and do not include appraisal fees, independent legal advice, or other potential other administrative fees.
Eligibility
Your eligibility will differ between each provider, but typically requires:
That you are a homeowner
The subject home is your primary home
All titles holders of the residence apply as joint borrowers
Age 55+ years old
Minimum home value
Location.
Bad credit. Even if you have bad credit, there are still options for you
Keep in mind, working with a broker can help you ensure you are getting what is best for you given your unique situation. Sometimes there is a better suitable alternative, like a home equity line of credit.
Discover your options. Call me to discover what is best for you, answer any questions, and get better help every-step of the way, stress-free.
