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We'll help you determine if a reverse mortgage is right for you and navigate the process with ease.
What's a Reverse Mortgage?
What's a Reverse Mortgage?
A reverse mortgage, or equity release, is a way for Canadian homeowners aged 55+ to access their home's equity without selling. It provides tax-free cash for retirement income, medical expenses, or home improvements, with no monthly payments required until the home is sold, the homeowner moves out permanently, or passes away.
Who is a Reverse Mortgage For?
Who is a Reverse Mortgage For?
Reverse mortgages are ideal for senior homeowners who:
- Want to remain in their current home and maintain ownership while accessing funds from their home equity.
- Are looking for a financial tool to supplement retirement income without taking on new monthly payment obligations.
- Need cash for essential expenses or improvements to enhance their quality of life.
- Prefer not to sell their home or downsize but still want to leverage its value.
Common Myths About Reverse Mortgages
Common Myths About Reverse Mortgages
Myth:
The bank owns your home.
Fact:
With a reverse mortgage, you retain full ownership of your home. The lender only holds a lien against the property, similar to a traditional mortgage.
Myth:
You can owe more than your home's value.
Fact:
Canadian reverse mortgages come with a "no negative equity" guarantee, ensuring that you or your heirs will never owe more than the home's appraised value at the time of sale.
Myth:
They're only for those with financial struggles.
Fact:
Many retirees use reverse mortgages as a strategic financial tool to enhance their cash flow and maintain their lifestyle during retirement, regardless of their financial status.
Myth:
Your heirs won't inherit your home.
Fact:
Your heirs have the option to settle the reverse mortgage balance and retain ownership of the home after your passing, provided they can repay the outstanding loan amount.
Client Testimonials
Client Testimonials
Greg is a true professional! Not only did he help us get our mortgage set up in record time, but he also follows up often to check in and make sure everything is going well! Recommend 10/10.Jake F.
Greg helped us find a mortgage for our home and made the process incredible easy and worry-free. They were very responsive, provided helpful explanations and direction throughout the whole process.Samiha S.
Throughout my home buying process Greg has been awesome! Top-notch customer service! He took the time to get to know me, find out what my needs and wants were, and answer the many questions I had as a first-time buyer. Jason L.
Frequently Asked Questions
Frequently Asked Questions
Q: Are reverse mortgages safe?
A: Yes, reverse mortgages in Canada are tightly regulated and include consumer protections, such as the "no negative equity" guarantee and mandatory financial counselling to ensure borrowers understand the terms and implications.
Q: What happens if I default on a reverse mortgage?
A: Defaulting on a reverse mortgage typically occurs when homeowners fail to pay property taxes or maintain required insurance. Lenders may work with you to resolve issues, but failing to meet obligations could lead to foreclosure.
Q: How do I apply for a reverse mortgage?
A: To apply for a reverse mortgage, start by consulting with a reverse mortgage specialist (like us!). The process involves assessing eligibility based on your age, home value, and financial situation, as well as obtaining legal advice and completing a home appraisal.
Q: Can I switch from a traditional mortgage to a reverse mortgage?
A: Yes, homeowners with an existing mortgage can transition to a reverse mortgage, provided they meet the eligibility criteria and financial assessment requirements of the lender.
Q: What are the costs associated with a reverse mortgage?
A: Costs associated with a reverse mortgage include interest rates, closing fees, and potentially servicing charges. If you decide a reverse mortgage is right for you, we'll work with you to ensure you understand these costs fully before proceeding.
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