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20 Sep

Have you ever considered a Reverse Mortgage??

General

Posted by: Danielle Davies

Are you over the age of 55, own your home, and looking for a way to supplement your income?

Have you considered a Reverse Mortgage?

There’s options to take a Lump Sum, Monthly Deposits or When you need some extra money

 

Here’s some answers to a few questions you may have:

How do I qualify for a reverse mortgage?

Qualifying for a reverse mortgage is largely based on property type, location, and borrower’s age. We lend to borrowers aged 55+ with homes in urban centres in Alberta, British Columbia, Ontario, and Quebec.

With a reverse mortgage, who owns the house?

You do. You will not transfer ownership of your property to the bank when receiving a reverse mortgage.

Could I owe more than my house is worth with a reverse mortgage?

As long as you have met your mortgage obligations, the amount you owe on the due date will not be more than the fair market value.

Who is responsible for paying property taxes for a reverse mortgage?

You must pay property taxes directly to the municipality.

How can I use the funds from a reverse mortgage?

You could use the funds to cover daily expenses, home renovations, medical bills, in-home care, family needs, trips, or help a relative with a down payment, it’s up to you.

We also offer a range of home-financing solutions. You can work with a mortgage broker to find a plan that works for you.

What if I already have a mortgage on my property?

If you have a mortgage, it must be paid off so that the reverse mortgage can be registered in first priority. You can use the proceeds from the initial advance to pay off your existing mortgage, any outstanding debt, or lien registered against the property.

Can I get out of my reverse mortgage?

Yes, you can. We recognize needs change and our product is designed for that. That’s why we offer flexible options to repay a portion of principal and interest. If you choose to repay the entire balance, there may be a prepayment charge.

How much equity do I need for a reverse mortgage?

The value of the reverse mortgage must be equal to or greater than the value of any loan secured against the property.

For example, a borrower who qualifies for 40% on a $500,000 home could access $200,000, provided any loans they have secured by the home are less than $200,000.

You can also checkout this Reverse Mortgage Calculator https://www.equitablebank.ca/residential/reverse-mortgage/tools/eligibility-calculator