Reverse mortgages have become a popular solution for many Canadians over the age of 55. Unfortunately, many people despite having worked hard throughout their careers have not been able to put enough money into savings to have the kind of retirement lifestyle that they would like.
A Reverse Mortgage Can Help
A reverse mortgage is a tool that older Canadians can use to receive a tax-free lump sum of money or regular monthly payments. It is a loan which uses the equity in your home as collateral, but unlike other types of loans, there is no set schedule for paying it back.
Reverse mortgage holders are free to use this money in any way they choose, whether it be for paying off debts and medical expenses or simply for enjoying a nicer lifestyle, traveling or getting a new car.
How Reverse Mortgages Work
When you apply for a reverse mortgage, you will be eligible to receive up to 55% of your home’s value. The exact amount you will qualify depends on a number of factors including not only how much your home is worth, but also where it is located and how old you are. Generally speaking, the older you are the more you will be able to borrow.
When you hold a reverse mortgage, it does not affect the ownership of your home or any government payments you may be receiving such as Old Age Security or Guaranteed Income Supplement.
The loan may be paid off at any time, but you are not required to pay it as long as you live in your home. If you die while holding a reverse mortgage, the balance plus any interest owed must be paid by your estate.
Is a Reverse Mortgage Right for You?
A reverse mortgage can be an excellent solution for any older Canadian looking for extra cash for expenses or simply to improve their retirement lifestyle. Before applying however, it is important to understand all of the important details. For example, reverse mortgages do come with some upfront fees including appraisal and legal fees.
A member of the Matrix Mortgage Global team will be able to sit down with you and help you determine whether this is the right product for you.
Contact Nationwide Mortgages today
If you are interested in reverse mortgages or any of the other mortgage solutions we offer, call the team at Matrix Mortgage Global today for your free consultation.
The homeowner keeps all the equity remaining in the home.
Conservative lending practices allow homeowners to take a maximum of 55% (33% on average) of the home’s appraised value. In fact, 99% of people who have a reverse mortgage have equity remaining in the home when the loan is repaid.
The equity remaining depends on the amount borrowed, the value of the home, and the amount of time that’s passed since the reverse mortgage was taken out.
Matrix Mortgage Global, Est. 2008
We specialize in alternative residential and commercial mortgages.
Matrix Mortgage Global Brokerage
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100 Consilium Pl. Suite 200 Toronto
On M1H 3E3
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