What Is A Reverse Mortgage ?
One of the greatest fears about retirement is being forced out of your home because there is not sufficient income to keep up with the principle and interest payments. Bunny slippers were created for people who love the comfort of home and don’t want to leave; and so were reverse mortgages. They let you remain in your home and access up to 55% of your home’s value to finance your retirement.
Selecting a mortgage option best suited to the unique needs of senior homeowners, especially if they have no or reduced monthly income options is a definite challenge. Bob, our reverse mortgage expert, has compared the features of traditional and reverse mortgages to help senior homeowners in Canada identify reverse mortgages as a possible option while planning for additional funds post retirement.
Traditional Mortgages v/s. Reverse Mortgages
- Like the name suggests, unlike a traditional mortgage where you are making payments to the bank, a reverse mortgage pays you.
- Unlike a traditional mortgage, with a reverse mortgage there’s no payment required. You make no monthly payments on the loan amount or the interest.
- The loan amount received in a traditional mortgage may be taxable. Once we establish how much you are eligible for, you can receive your tax-free cash in one lump sum, or take installments after the initial advance.
- Because of the conservative lending practices of HomEquity Bank, the value of the reverse mortgage will never exceed fair market value of the home – securing your equity and investment. A reverse mortgage is secured against your property and title remains in your name at all times. You always maintain ownership of your home and you’ll never have to move or sell. In a traditional mortgage, you may stand to lose your property if you default on the loan repayment.
Across Canada, senior homeowners, age 55 and over, are eligible for a reverse mortgage. With a reverse mortgage from HomEquity Bank Canadian seniors can get the money they need to finance their retirement and stay in their homes.
Since 1986, HomEquity Bank has offered CHIP Reverse Mortgages to eligible Canadian homeowners. Get your free information guide and find out more about what a reverse mortgage is, its features and benefits, how it helps tackle the significant challenges faced by seniors and all the ways a reverse mortgage can help you finance your retirement.