Author: Peter Gomes
If you are planning to take out a reverse mortgage, you can free up some of the equity that is trapped in your house. Reverse mortgage plays an important role for older Canadians. It offers financial security to seniors. The proceeds of reverse mortgage in Canada can be used for meeting various financial obligations. It may include meeting unforeseen expenses or you can use the cash for home improvement, renovation, repairing work etc.
Reverse mortgage in Canada is different from the traditional mortgages that are taken out. There are many differences between reverse mortgage and traditional mortgage, the main one being mode of repayment. In case of traditional mortgage you should have a sound income that can support your monthly mortgage payments. In Canadian reverse mortgage, you don’t have to make monthly mortgage payments. And you can repay the mortgage if you change your residence or the mortgagee dies.
There are few requirements that are to be fulfilled if you are planning to opt for reverse mortgage. You need to be 60 years and above and the house in which you are residing should be your primary residence. The proceeds of reverse mortgage can be availed as –
Lump sum
Supplement to retirement funds
As supplement to Social Security
In form of “Stream of payments”.
While a traditional mortgage is “Decreasing debt and increasing equity”, a reverse mortgage on the other hand is “Increasing debt and decreasing equity”.
When you take out a reverse mortgage in Canada, you have to continue paying your real estate taxes and also make payments for utilities etc. If you have opted for Ontario reverse mortgage, you cannot face foreclosure for missing your mortgage payments.
Reverse mortgage fees in Canada
The reverse mortgage fees in Canada usually vary from one lender to another. The initial set-up fee ranges between USD$1275 and USD$1485. A lender may also offer Equity Protection Option in some cases. This ensures that at any point of time at least a certain amount of equity remains in the property.
If you are planning to take out a reverse mortgage, you can free up some of the equity that is trapped in your house. Reverse mortgage plays an important role for older Canadians. It offers financial security to seniors. The proceeds of reverse mortgage in Canada can be used for meeting various financial obligations. It may include meeting unforeseen expenses or you can use the cash for home improvement, renovation, repairing work etc.
Reverse mortgage in Canada is different from the traditional mortgages that are taken out. There are many differences between reverse mortgage and traditional mortgage, the main one being mode of repayment. In case of traditional mortgage you should have a sound income that can support your monthly mortgage payments. In Canadian reverse mortgage, you don’t have to make monthly mortgage payments. And you can repay the mortgage if you change your residence or the mortgagee dies.
There are few requirements that are to be fulfilled if you are planning to opt for reverse mortgage. You need to be 60 years and above and the house in which you are residing should be your primary residence. The proceeds of reverse mortgage can be availed as –
Lump sum
Supplement to retirement funds
As supplement to Social Security
In form of “Stream of payments”.
While a traditional mortgage is “Decreasing debt and increasing equity”, a reverse mortgage on the other hand is “Increasing debt and decreasing equity”.
When you take out a reverse mortgage in Canada, you have to continue paying your real estate taxes and also make payments for utilities etc. If you have opted for Ontario reverse mortgage, you cannot face foreclosure for missing your mortgage payments.
Reverse mortgage fees in Canada
The reverse mortgage fees in Canada usually vary from one lender to another. The initial set-up fee ranges between USD$1275 and USD$1485. A lender may also offer Equity Protection Option in some cases. This ensures that at any point of time at least a certain amount of equity remains in the property.
So here the part where I tell you about myself. Nothing too exciting. I have been in various aspects of the Mortgage industry for the past 20 years.
From running offices, multiple offices, regions, overseeing Underwriting and productions from both Banker and Broker sides. I have seen many cycles and
expect to see more.
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