Let's Talk Reverse Mortgages

"A conventional mortgage advances you funds in order to buy a house, a reverse mortgage is just the opposite: It advances you funds from the house you already own. "

-Moneysense.ca

Another term for a Reverse Mortgage would an Equity Release. The qualifications are simple;

*Are you 55 years old or older?

*Is the property your principal residence (owner occupied)?

*Do you have considerable equity in your home or have it paid it off entirely?

There are many reasons someone might want to consider this option. You may be wanting to pay off remaining debt, give an early inheritance to family members, help a loved one in long-term care, or do some much needed renovations to your home.

This type of mortgage is secured against your principal residence and you receive the loan through tax-free funds either in a lump sum amount, or as regular monthly instalments, your choice. Interest accumulates on the loaned funds as they are received and the outstanding balance increases over time. There are no mandatory monthly payments on reverse mortgages, the mortgage is only repaid when the last remaining homeowner on title sells the property (proceeds of the sale would go towards the loan) or passes away.

If this type of flexible financial solution interests you and you want to see what you would qualify for, I would be more than happy to help!

Alicia Sharkawi

Advanced Mortgage