What It Is And When You Should Get One
Learn more about reverse mortgages in Ontario, Canada, and how we can help.
What Is A Reverse Mortgage?
A reverse mortgage refers to a loan made available to senior homeowners over the age of 62 who have a significant amount of home equity they can borrow against. Unlike forward mortgages, which are required to purchase a home, reverse mortgages don’t require any loan payments. Instead, the overall loan balance is due when the borrower dies, relocates permanently, sells the home, or defaults on the loan.
Much like how forward mortgages require the borrower to make payments to the lender, reverse mortgages require the lender to make payments to the borrower. Seniors can receive payments from the lender in several ways. These can be in the form of a lump sum, annuity payments, term payments, or a line of credit. They also have the option of annuity or term payments with a line of credit.
When Should I Get A Reverse Mortgage?
To start, you’ll have to meet the reverse mortgage requirements. All borrowers on the home’s title must be 62 years old and live in the home as a primary residence. It’s also required that you own your home or have at least 50% equity in your home.
There are a few reasons why a reverse mortgage may be a good option for you. For some seniors, a reverse mortgage may provide a way to cover significant expenses late in life. Reverse mortgages may also be an option for homeowners who have used most of their savings or those without any heirs to inherit their home.
However, reverse mortgages aren’t for everyone. While a reverse mortgage may be helpful, homeowners may find several reasons not to get one. For example, if you have heirs that want to inherit the property or family members that live there, a reverse mortgage may not be right for you.
A reverse mortgage also isn’t a good option if you can’t find a trustworthy lender or reverse mortgage loan program. Likewise, if you have life insurance or enough savings to tap into, a reverse mortgage may not be for you either.
Why The Mortgage Firm?
We are happy to have helped hundreds of families in the London Area over the past 25 years with their mortgages and property financing needs.
“This is my second time dealing with them and they are fantastic! Dani Hanna and his team make you feel like it’s the easiest thing you’ve ever done and communication throughout the process is quick and easy.
All around great company and would highly recommend!”
“Just a few weeks ago, we were lost, confused and desperate. Buyers of our home refused to close. Our situation is rare. I googled mortgage brokers in London and luckily I found RMA. In just few minutes, I got a call back and explain our situation. Thank you for saving our dream home. We were able to close on our purchase and thank you so much for helping us! Thank you as well to Brandon and Ken! All the best and luck to your team!!!”
“I am so happy that we found Dani at RMA! He is knowledgeable, honest and friendly! He offers excellent advice and goes above and beyond to provide you with outstanding, professional service! I highly recommend Dani at RMA!!!”
Lets Chat About Reverse Mortgages
Is your current interest rate a little high? Need some extra money? Living in Ontario, Canada? Get in touch with us today for your free, no-obligation quote.