Maybe you’ve heard that a reverse mortgage is a great way to finance your retirement. Maybe you know someone who got one and now you’re wondering, how do I qualify for a reverse mortgage? Bob, our reverse mortgage expert explains who is eligible and how simple it is to qualify for a reverse mortgage.
A reverse mortgage acts as a way for seniors to access the equity in their homes without selling, or moving. So long as the homeowner lives on the premises, the payments on the principal and the interest are deferred and are settled when the homeowner no longer maintains residency in that home. With the proceeds from reverse mortgages, you can pay off debts, renovate your home, cover health care costs, help family members, take a vacation, and live comfortably.
Qualifying for a reverse mortgage in Canada depends on:
The age of the homeowners on the title
Canadian senior homeowners, age 55 and over, are eligible for a reverse mortgage. There is no maximum age, in fact, the older you are the more money you can access – up to 55% of the value of your home.
The type of property
Most types of properties are eligible for a reverse mortgage including single family dwellings, condo apartments, and townhouses.
The home location
The loan amount may vary depending on whether the property is present in a rural or urban area.
The value of the home
The current appraised value of the home is also considered. Any secured debt against the home must be paid off with the proceeds from the reverse mortgage.
Get your free, no obligation information guide here to access the equity of your home, find out if you qualify for a reverse mortgage and use its proceeds to finance your retirement.