A reverse mortgage is a special mortgage only made available to people in Canada over the age of 55.
It gets it’s name from the fact it is almost the opposite (or ‘reverse’) of a traditional mortgage – in that there is no credit score requirement, you don’t need income to qualify and there are no monthly payments. The lender is paying you money, without the requirement that you repay any of it – which is why it is considered the ‘reverse’ of a traditional mortgage.
Absolutely tax free money!
Keep your home no matter what
No monthly payments required
Credit score not required
Speak to our mortgage professional for help understanding the specific advantages or disadvantages that apply in your particular situation. Basically, you have to take on a slightly higher interest rate on the mortgage to get all the benefits of a reverse mortgage. However, the interest rate is still not as high as an unsecured line of credit, personal loan or credit card.
The lender makes their money if and when the owners pass away and the house is either sold or re-mortgaged to pay back the loan – plus interest.
The best way of thinking about this is that with a traditional mortgage, amortization periods can be 25 to 30 years – so it can be 25 to 30 years before the lender gets their money back in full. A reverse mortgage is following the same concept – long term lending. Except that the lender won’t get their money back until all home owners pass away.
We recommend you speak to a mortgage professional to understand and apply the criteria to your situation and help understand if you are a good candidate for a reverse mortgage.
The most important elements that would make you a good candidate for a reverse mortgage or not (assuming you meet the other criteria – that you are over 55 years old) follow:
1. Do you need additional cash?
– either by getting the money directly or through not having to pay your monthly mortgage/line of credit/credit card bills every month? Reverse mortgages are best suited to people in need of cash or a reduction in their home loan bills. If you don’t actually need the cash or to pay off any existing home loans, then getting an emergency line of credit or Reverse Mortgage Line Of Credit might be a better option.
2. Are you looking to stay in your home for life?
Again this is a big consideration, as reverse mortgages are mainly intended to help you stay in your home for life. If this is not important to you, then you might consider selling your home and downsizing as another option.
While these may be the biggest reasons why someone would be a good candidate for a reverse mortgage, there may be other factors to consider; speaking to a mortgage professional will help.
Reverse Mortgages have been in Canada since 1986, and since that time they have been helping Canadian homeowners access their home value in a way that a typical mortgage does 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. You will never be forced to sell your home. Ever. No matter what anyone tells you.
Reverse Mortgages have had a great history in Canada and with more Canadians reaching retirement age, they will continue to gain in popularity as a great way for older Canadians to use the value of their home.
Gary is very knowledgeable at what he does. He went above and beyond to help me get a great rate, I will definitely recommend him to anyone without blinking an eye. You make me feel comfortable during the whole process. I just want to say a big thank you for everything you have done for me and my family
Gary is definitely a gem in not only the world of mortgages but overall as a person. He goes above and beyond to help and do whatever he can to help. Gary has helped us and went out of his way to make things work. He is kind, smart and has amazing customer service. We highly recommend him to everyone.
Gary is a fabulous and very knowledgeable. He went above and beyond to help us get a great rate!! We highly recommend him to everyone!! Thank you sooo much Gary for everything you have done for our family!!
I was very happy with the professionalism and courtesy provided to us by Gary and his team in navigating and procuring for us a great deal on a rather large, $215K, 2nd mortgage to help complete our extensive home renovations. Many Brokers will promise and not deliver but Gary and his extensive contacts and experience in this industry enabled us to quickly secure a 2nd mortgage and achieve our goals.
Gary's work ethic is fantastic. Not only is he organized, aware and thorough with his clients, he truly does approach each situation with 3 options. I appreciate the fact that he does not rely on one option ONLY to service his clients. This is particularly important at times when the market fluctuates or when things simply happen outside of our control. Gary, you have my highest recommendation.