If you’re like many older Canadians, chances are that most of your net worth is tied up in your home. Luckily, a reverse mortgage offers Canadian homeowners a secure way to access their home equity, completely tax-free.
Learn the facts about reverse mortgages by asking your advisor these six key questions.
1. What Age Do I Need To Qualify?
To be eligible for a reverse mortgage in Canada, you must be at least 55 years old. Additionally, if you have a spouse, then you must both be at least 55 years old to qualify.
The amount you will be eligible for will depend on several factors, including:
- The location of your home
- The type of home (i.e., detached vs condo)
- Your current home equity amount
- The condition of your home
- The appraised fair market value of your home (it must be at least $250,000)
2. What Is The Fair Market Value Based On?
The fair market value of your home at a given date is the amount it could sell for on the market on that date. This value is estimated by a qualified home appraiser and will depend on many of the factors listed above, such as the location, type, and state of your home.
3. Is There A Chance I Could Owe More Than The Fair Market Value Of My Home?
You will not owe more than the home’s fair market value if you’ve met all the loan requirements.
4. Who Gets The Profit If My Home Appreciates?
If your home goes up in value, the profits are yours to keep. Reverse mortgages only require that you repay the value of the mortgage principal, interest, and any associated fees.
5. Can I Get A Reverse Mortgage With Bad Credit?
Generally, you can. At Reverse Mortgage 4U, we understand that life doesn’t always go according to plan, which is why we offer solutions for everyone. Make sure to speak with one of our trusted advisors to learn more about your options.
6. Could A Reverse Mortgage Work For Me?
If you need to pay for medical expenses, make upgrades to your home, help your family with additional expenses, or plan for retirement in your home, then a reverse mortgage may be the right fit for you.
If a reverse mortgage does not work for you, then we will present other options so that you can find the best solution for your needs. Contact our friendly experts today and we will work with you to find a mortgage solution that works for your family and needs!
Additional Reverse Mortgage Facts You Should Know
In addition to the eligibility requirements discussed above, several other factors impact reverse mortgage qualification.
Reverse Mortgage Residency Requirements
To be eligible for a reverse mortgage on your property, it must be your principal residence.
Reverse Mortgage Income Requirements
Unlike a traditional mortgage, you will not be required to make monthly payments; therefore, there are no income requirements.
Maximum Eligible Amount
You may access up to 55% of your home’s value with a reverse mortgage. However, the actual amount you are eligible for will depend on your age, credit history, and the appraised value of your home, among other factors.
Contact A Reverse Mortgage Specialist Today
Reputable reverse mortgage companies will work with you to design a solution that works for your lifestyle. Contact Reverse Mortgage 4U today to speak to one of our trusted advisors and learn more about your options.