Reverse mortgages are a great fit for Canadians finding themselves ‘cash poor but house rich’ and are looking for additional cash and are not wanting to sell their home.
Reverse mortgages are not straight forward, leading to confusion and misinformation on how they work. They can also be complicated by family members and family situations. My advice is to take your time, look at your options and speak to a professional who can help.
Reverse Mortgages have been helping Canadian homeowners since 1986, access their home value in a way that a residential mortgage do not. Reverse mortgages have the reputation and stability that homeowners want so that they can be comfortable knowing that their home equity is being put to good use. For the most people, your credit score and income are not factors, and you maintain ownership and control of your home. You will never be forced to sell your home, regardless of what anyone tells you.
With more Canadians reaching retirement age, reverse mortgages will continue to gain in popularity as a great way for older Canadians to use the value of their home. If you find yourself struggling to make your day-to-day costs, pay medical bills, help family members, or require home renovations, then a reverse mortgage may be a good fit for you too.
By choosing a Mortgage Alliance Professional you can access all your mortgage options with just one phone call, one application. Your Mortgage Alliance Professional works on your behalf. We will place your mortgage with the lender that is the best fit for you, whether it’s a major bank or a private lender.
Benefits of a Reverse Mortgage
The bank is not in the homeownership business. Instead, they are here to provide you with a unique financial product designed to provide you with the cash you need, when you need it.
You are not required to make regular mortgage payments for as long as your home is your primary residence.
Access up to 55% of the value of your home and receive the funds in the amount you desire in one lump-sum. You can also get monthly/ quarterly installments, or a combination of a lump-sum and installments.
All funds acquired through CHIP are tax-free, and do not affect your OAS or CPP.