Reverse Mortgage Services
Mortgage Agent in Sudbury, ON
What Is A Reverse Mortgage?
A reverse mortgage is a secured loan that a homeowner can access that does not require monthly payments.
How Does A Reverse Mortgage Work?
With a reverse mortgage in Canada, the homeowner continues to own their home and receive cash. You can receive the money in a lump sum amount or in monthly amounts. The average property has increased in value over the past 15 years by 7.5% per year. Say your property is $1 million in value, that means your value increases each year by $75,000.00, the reverse mortgage on your home is $500,000.00 at 5%. Each year the interest accumulated is $25,000.00. This means that in one year you made no mortgage payments and your net worth still grew by $50,000.00.
Homeowners often take out reverse mortgages to:
- Make Home Improvements
- Gift Down Payment to a Child
- Pay Monthly Bills
Your loan balance will not exceed the fair market value of your home.
When you take out a reverse mortgage in Canada, the balance of the loan slowly accrues over time, while at the same time the home's value continues to rise. This process ensures equity in the home over the long term. Regardless of market fluctuations, the Canada Reverse Mortgage lender guarantees that the loan balance will not exceed the fair market value of the home. In other words, you can never owe the lender more than the value of the home.
Who Qualifies For A Reverse Mortgage?
To qualify for a reverse mortgage you must be the following criteria:
- Home value of at least $250,000
- All owners of the home must be over the age of 55
- The home must be your principal residence
If you are interested in learning more about a Reverse Mortgage or what other options may be available give us a call at 249-979-0025 or (289) 795-4649.