Did you know that approximately 50% of Canadians over 60 are finding that most of their savings are tied up in their real estate, yet they don’t have the cash flow they want or need in retirement?
One possible solution for this is a Reverse Mortgage. A Reverse Mortgage is a loan that allows you to access money from the equity in your home without having to sell. Whether it’s for yourself or an ageing family member, a reverse mortgage may be a good option to keep the family home that you are comfortable in.
Am I eligible for a Reverse Mortgage?
In order to be eligible for a reverse mortgage you must be:
at least 55 years old
The maximum amount you’re able to borrow depends on your age, the appraised value of your home and your lender.
What do I need to do?
Before applying you must pay off any outstanding loans or lines of credit that have been secured against your home. These include mortgages & Home Equity Lines Of Credit (HELOC).
The loan can be used for anything you wish, such as:
Home repairs or improvements.
Help with regular bills.
Cover healthcare expenses.
Repay debts not secured against your home.
Two financial institutions offer reverse mortgages in Canada, we have great connections with the leading institution; HomeEquity Bank. They offer the Canadian Home Income Plan (CHIP), which is available across Canada.
Reverse mortgages are a loan secured by the equity in your home. Without having to sell, you could receive up to 55% of the value. With a reverse mortgage, you don’t make any payments – interest or principal – unless you decide to move or sell. You maintain ownership and control of your home while enjoying all the benefits of having converted some of its value into readily accessible, tax-free cash flow.
By choosing Browne Mortgages + More you benefit from our close relationship with Home Equity Bank. We will provide you with a Mortgage Broker who knows your situation and exactly what works best for you!