Reverse Mortgage


Reverse Mortgages are not right for everyone, but it could be right for you. It Deserves a conversation. Call me at 416-204-0156



A Reverse Mortgage is designed to help Canadians aged 55 and over. It allows you to access some of the equity in your home without creating another liability payment or debt to service.


Benefits of a reverse mortgage

The reverse mortgage allows anyone 55 years of age and over to live or retire on their terms. If you’re like most Canadian homeowners 55+, much of what you own fits into two categories – the equity in your home and the money you have saved. It is likely that the value of your home has grown over the years and makes up a large portion of your net worth. Unfortunately, you cannot access the value in your home unless you decide to sell your home. Which is not always desirable after living so long in your home.

 This is where a reverse mortgage comes in. A reverse mortgage allows you to access up to 55% of its value without having to sell your beloved home. And best of all, you don’t have to make regular mortgage payments until you eventually move or sell. Additionally, the money you borrow is tax-free and it does not affect the Old-Age Security or Guaranteed Income Supplement (GIS) benefits you may be getting.

 As the homeowner, you are required to maintain your home and remain current on property taxes and homeowners’ insurance. 

To recap, a reverse mortgage is suitable for people who don’t want to move but would like to improve their monthly cash flow. With a reverse mortgage, you always remain on title and retain ownership and control of your home.


Do I qualify for a reverse mortgage?

If you are a Canadian Homeowner, age 55 or older you qualify for a chip mortgage on your primary residence. How much you qualify for will be dependent on your age and the age of your spouse, the property location, value of your property.


What can the funds be used for?

There are no restrictions on what you can use the funds for. Some of the most popular reasons are. Home repairs, pay of existing debts, help a child or grand child with a down payment on a home, travel and invest.


 Can they take my home?

A Canadian reverse mortgage participant, you are not required to make any payments on the reverse mortgage. You still must keep home insurance and taxes up to date and paid. If those are paid you will never be asked to leave your home for as long as you live there. In the US the rules are quite different, and many people confuse the Canadian product with the American product.


The most attractive and least attractive parts of a Reverse Mortgage:


You will receive the funds tax-free and spend them any way you wish.

You maintain ownership in your home.

There are never any monthly mortgage payments required. You must keep the home insured and the property taxes paid.

A reverse mortgage is a non-recourse loan. Your estate will never owe more than the value of your home.

You chose how you will receive the funds. All at once or slowly over time.


The least attractive parts of a reverse mortgage:

Because no payments are required the interest will accrue. So, the balance of the mortgage goes up, not down.

Interest rates tend to be slightly higher than a traditional mortgage.