Reverse Mortgage

 

What can a reverse mortgage do for you?

A reverse mortgage gives you access to the equity that already exists in your home, turning a portion of it into an additional source of cash—tax and payment free. This financing solution allows you to enjoy your lifestyle and focus on your priorities, like paying off debt, covering everyday expenses, making renovations, and supporting your family—all while retaining ownership of your home, and making no payments until the mortgage is due.

  • You are a Canadian homeowner and are aged 55 and over
  • You live in Ontario and for more than 6 months per year
  • Your home’s value is at least $250,000 and is owner occupied
  • All title holders of the residence apply as joint borrowers

Who are the Reverse Mortgage Lenders?

Currently there are two reverse mortgage lenders in Canada.
CHIP Reverse Mortgage and Equitable Bank.

There are slight differences between these two lenders and we can help you
decide which lender and product is more suitable for your situation and needs.

chip reverse mortgageequitable bank

Benefits of a Reverse Mortgage

A reverse mortgage can help you maintain your financial independence and keep your family’s future in mind.

  • Tax-free cash
  • No monthly payments
  • Flexible advance and repayment options
  • Retain ownership of your home
  • No negative equity guarantee

 

reverse mortgage

 

Reverse Mortgage vs. Line of Credit

When it comes to lending options, your choice depends on what matters to you most. Unlike a reverse mortgage, a line of credit may require payments and significant amounts of verifiable income for qualification. If you’re looking to access tax-free cash, with plenty of repayment options, a reverse mortgage might be the better option.

Considering a reverse mortgage is part of a larger financial decision when it comes to your home and your family. As you discuss this option with your loved ones, you’ll be better prepared to make a decision that’s right for you.

 

Discuss Your Reverse Mortgage Options

We can work with you to:

  • Calculate your maximum eligible loan amount
  • Determine whether you want a one-time advance (an Initial Advance), Single Advances and/or Recurring Advances
  • Determine whether a fixed or adjustable interest rate would be better suited to your financial needs and select the interest rate reset term
  • Outline your ongoing property-related expenses
  • Walk you through the process of changing your mortgage type and interest rate term in the future

More on Types of Advances

You can opt to receive a one-time advance (an Initial Advance), Single Advances and/or Recurring Advances. Having the flexibility with how you receive your funds is important.

If you would like to take your maximum eligible amount as a one-time advance:

  • That means you would be taking all your funds upfront
  • You’ll need to decide on an adjustable or fixed interest rate term
  • You may have access to lower rates

If you decide not to take your maximum eligible amount, you have options for the remaining funds (keep in mind there’s a minimum initial advance of $25,000):

  • You can choose between adjustable and fixed interest rate reset terms
  • Set up scheduled recurring advances
  • Leave room to add single advances at a later date

Recurring Advances

  • Are only available for an adjustable interest rate term
  • Can be scheduled at any time for up to 20 years
  • The minimum advance amounts vary by the frequency chosen:
    • $500 monthly
    • $1,500 quarterly
    • $3,000 semi-annually and
    • $6,000 annually


Get a Reverse Mortgage Quote Today