A reverse mortgage is a solution tailored to specifically meet the needs of retired homeowners. A reverse mortgage is designed exclusively for seniors aged 55 or older (for a married couple, both have to be aged 55+) and who have a great amount of equity in their home.
A reverse mortgage is a loan secured against the value of your home. It enables you to convert up to 55% of your home's value into tax-free cash. The funds from a reverse mortgage can be used for whatever reason you desire; to cover monthly expenses, renovate your home, pay off debt, or travel. Growing in popularity, many reverse mortgagors are using the proceeds to gifting their loved ones with an early inheritance so they can witness first-hand the impact of those inheritances!
With a reverse mortgage, you maintain ownership of your home and there are no monthly mortgage payments to make. Repayment of the loan is only required if you subsequently choose to move or sell. A reverse mortgage guarantees the amount you eventually repay will never exceed the fair market value of your home. And if your home rises in value, the appreciation is all yours to keep. You are simply required to maintain your property and pay the property taxes and home insurance.
Reverse mortgages are sometimes referred to as a CHIP. This refers to a reverse mortgage once called The Canadian Home Income Plan provided by HomeEquity Bank. There are now two major lenders who offer reverse mortgages in Canada with the other major lender being Equitable Bank.
You worked hard during your working years to purchase and maintain your home; why not let your home work for you now?!
For more information, we encourage you to read our blog post on The Top 7 Misconceptions About Reverse Mortgages.
We invite you to contact us or schedule a complimentary consultation with a Sleep Easy Financial Mortgage Solutionist to see how we can make your homeowner’s equity work for you!
Sleep Easy Financial has access to 90+ mortgage lenders including the big banks. We beat the banks’ mortgages and our services are at no cost to you as we get paid by the lenders. Whether it's for your next home purchase, mortgage renewal or refinance, our licensed mortgage professionals are committed to getting you your lowest rate so you save as much money as possible. We help you at every stage of the journey and are with you for the life of your mortgage. Be mortgage savvy and let us shop your next mortgage for you. Contact us or schedule your complimentary consultation today.
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