With a reverse mortgage, you can use your home equity to supplement your retirement income, pay for home improvements, or pay off other debts. Contact us today to learn more about how a reverse mortgage could benefit you!
A reverse mortgage is a loan that allows you to access the equity in your home without selling it. With a reverse mortgage, you can receive payments from your home equity without having to make monthly loan payments. Equity release is a term used to describe the process of accessing the equity in your home without selling it.
When it comes to reverse mortgage, the maximum amount you can borrow depends on a number of factors:
A reverse mortgage loan is repaid when you move out of your home or sell it. You can make payments on a reverse mortgage once the loan is due. This can be a good option if you're retired or on a fixed income and need extra money to cover expenses.
The program is available to homeowners aged 55 and over who own their homes outright or who have a significant amount of equity in their homes.
If you have an outstanding loan or line of credit when you take out a reverse mortgage, you will need to pay it off before you can access the equity in your home. A reverse mortgage may limit your ability to take out other types of financing against your home, such as a HELOC.
You have the option of getting your loan money in one lump sum or in installments. If you choose the latter, you'll get some of the money upfront and the rest over time.
No regular loan payments? Cash-out equity from your home without selling? Borrow without paying taxes? Sounds too good to be true, but a reverse mortgage may be a viable option for seniors who need extra money. With a reverse mortgage, you can still own your home while receiving cash payments, and the money you borrow won't affect your OAS or GIS benefits.
Reverse mortgages have higher interest rates than most other types of mortgages, meaning the equity you hold in your home may go down as you accumulate interest on your loan. Additionally, your estate has to repay the loan and interest within a set period of time when you die, which may be longer than the time allowed to repay a regular mortgage. This could leave less money in your estate to leave to your children or other beneficiaries. Finally, costs associated with a reverse mortgage may be higher than a regular mortgage or other credit products.