Unlock the value in your home with a reverse mortgage
- Enjoy a more comfortable retirement on your terms, in your own home
- Maintain full ownership and control
- No payments are required unless you choose to move or sell
- Receive the money tax free
If you’re like many Canadians, chances are, the value of your home has grown over the years and makes up a good portion of your net worth. While having a home that has built value or equity is a positive, you typically can’t get access to the built up equity unless you sell your home. And that’s something many homeowners simply do not want to do.
With so much net worth tied up in their homes Canadians can be asset rich, but cash poor. Increasingly Canadian pensioners and retires do not have the income or cash to make ends meet or enjoy the lifestyle they desire. Reverse mortgages were specifically designed for older borrowers to provide access the equity in their homes.
As with a traditional mortgage, a reverse mortgage is secured by a first mortgage registered against the title of the borrower’s house. With a reverse mortgage you:
If you decide not to make a monthly mortgage payment the interest for that amount is added to the loan balance and reduces the equity in your home. The term for this is that the interest is be capitalized or added to the loan balance.
The debt, including all the monies that were borrowed and any accumulated interest charges, is repaid to the lender when:
The funds borrowed are paid to you tax free and can be paid as: