Reverse Mortgages Ontario

Absolutely! Ownership of your home remains with you. The reverse mortgage is registered against your home, similar to most regular mortgages or home equity lines of credit.

The remaining equity in your home depends on the difference between its current value and the amount owed on the reverse mortgage.

You have the flexibility to use the funds as you see fit, whether it’s paying off your mortgage, covering daily expenses, renovating your home, managing medical bills, or helping family members.

You can choose to receive the approved funds as a lump sum or in regular monthly or quarterly payments, based on your preference.

If you have an existing mortgage, it must be paid off with the proceeds from the reverse mortgage to register it in first priority.

If both spouses are joint tenants, the surviving spouse can continue as a borrower and enjoy all the benefits of the reverse mortgage.

You must pay property taxes directly to the municipality unless you qualify for a tax deferment program in your province.

A POA for property may be used when applying for a reverse mortgage, but your attorney must have the authority to deal with real property matters.

Reverse mortgages may be portable, subject to meeting the lender’s guidelines and eligibility conditions.

While a home equity line of credit is an option, it may require regular income and mandatory periodic payments, which can be challenging for retirees.

ILA is essential to ensure you understand the terms and conditions of the reverse mortgage, protect your interests, and verify that you are making an informed decision without pressure.

1. Reduce Interest Accumulation:

   To limit interest, take out only the initial amount you need, and withdraw additional funds as necessary. This way, you’re not paying interest on money you don’t immediately use. Plus, there’s the option to pay down the interest monthly, all without pre-payment charges.

2. Early Repayment:

   Yes, you can exit your reverse mortgage before the initial agreed-upon term ends. It’s possible, though there may be a prepayment penalty involved, depending on lender guidelines. Always discuss this with your mortgage provider.

3. Credit Score Concerns:

   Don’t worry if your credit score isn’t pristine. While it’s a factor considered, a specific minimum score isn’t usually required. What matters most is your ability to manage essential property expenses like taxes, heating, insurance, and condo fees.

4. Knowing When It’s Due:

   When does your reverse mortgage come due? It happens when you sell or transfer the property, the last borrower moves into a retirement residence, or in cases of mortgage default, following lender guidelines.

5. Minimal Documentation:

   Compared to regular mortgages, reverse mortgage transactions involve far less paperwork. Typically, you’ll need two valid pieces of ID, your property tax bill, statements of any existing debts on the property, and supporting documents.

6. Eligibility Criteria:

   Wondering if you qualify for a reverse mortgage? If you’re a Canadian homeowner aged 55 or older, live in the property as your primary residence, and your home has a minimum appraised value of $250,000, you likely meet the criteria. Call us to determine your eligibility and explore your potential equity access.