What is a Reverse Mortgage in Canada? How to Qualify?
Reverse Mortgage – The Cure for Low Cashflow
A reverse mortgage is a financial product available to Canadian homeowners aged 55 or older, which allows them to access the equity in their home without having to sell or move out of it.
Essentially, a reverse mortgage allows seniors to borrow money against the value of their home and receive it as tax-free cash, while still retaining ownership of the property.
Reverse Mortgage Qualification Criteria
To qualify for a reverse mortgage in Canada, you must meet the following criteria:
- You must be at least 55 years of age.
- You must own your home outright, or have a small mortgage balance remaining.
- Your home must be your primary residence.
- Your home must be located in Canada and be a type of property eligible for a reverse mortgage.
- You must have enough equity in your home to qualify for a reverse mortgage.
- You must undergo a financial assessment to determine your ability to pay property taxes, home insurance, and other necessary expenses.
A Reverse Mortgage is still a Mortgage!
If you meet these requirements, you may be eligible for a reverse mortgage in Canada.
It’s important to note that a reverse mortgage is a loan and, like all loans, it must be repaid eventually.
When you sell your home or no longer use it as your primary residence, you will need to repay the loan, along with any interest that has accrued.
It’s also important to understand the fees associated with a reverse mortgage, including interest rates, legal fees, and appraisal costs.
In other words, it’s NOT CHEAP or FREE Money.
Conclusions and Further Thoughts
Before applying for a reverse mortgage, it’s a good idea to speak with a financial advisor or mortgage broker to determine if it’s the right choice for you.
Call Huber Mortgage to consult on whether this is a good move for you. Contact – click HERE.
Sincerely,
Michael
PS – One of my hobbies is blogging about mortgages, debt and government policy. During the day I’m a MORTGAGE BROKER in Kelowna, BC!
Check out the Huber Mortgage Home Buyers Guide HERE
