How does a reverse mortgage work?
A Reverse Mortgage in Canada is a loan secured against the value of your principal residence. Unlike a loan or a regular mortgage, with a reverse mortgage, you are not required to make regular mortgage payments, and it gives you tax-free access to cash in a lump sum or installments with no mandatory ongoing payments. The loan must be repaid only when the homeowner no longer lives in the home.
How do I qualify for a reverse mortgage?
If you are a Canadian homeowner living in Alberta, British Columbia, Ontario, are 55 years old or over, and own your home, you could get up to 55% of the value of your home as a Reverse Mortgage. You must also:
- Live in your home for at least six months a year
- You keep your residence in good order
- you remain current with your property tax payments
- Maintain the terms and conditions of your reverse mortgage agreement
What can I use a reverse mortgage for?
The primary purpose of a reverse mortgage is to retire in your home, but you can use the money for anything you wish:
- Provide an early inheritance to your kids
- Helping your lids buy their first home
- Paying off debt
- Covering everyday expenses
- Making home renovations
- Paying for in-home care
Will I lose my home with a reverse mortgage?
You worked hard to become a homeowner, and it’s important to us that we keep it that way. With a Reverse Mortgage in Canada, you always maintain control of your home. There is no requirement to transfer ownership of your home until you move out of the home.
Will I ever owe more than the value of my home with a reverse mortgage?
With a reverse mortgage, you will never owe more than the value of your home. If you make no interest payments your outstanding amount will grow. The equity in your home will also increase which will be more than the loan increase amount.
Would you like more information?
Contact a Sunlite Mortgage agent near you for more information or contact us at (877) 385-6267