Reverse Mortgage Information
Here are some reasons a reverse mortgage can be a fantastic solution for many families hoping to help their kids and grandchildren get ahead.
Becoming a homeowner in BC is increasingly difficult especially for young people trying to buy their first home.
Easy to Qualify
Reverse mortgages are mainly qualified on the amount of equity in your home and your age. It’s not about your income.
Optional Payments
You can gift money to your children or grandchildren without requiring monthly payments. Or you can choose to pay back similar to a regular mortgage, and you can always pay annual lump sums or complete payout at any time.
Optional Payments
No payments are required as long as one applicant lives in the home.
Easy Qualifications
Limited credit and income requirements, No medical check.
Up to 55%
Ability to unlock up to 55% of home value into cash (depends on age and property.)
When you need it
Funds can be advanced as needed, with interest only accruing on what’s been advanced.
Tax Free
Proceeds are tax-free
No Penalties
Penalties are waived at death.
You never lose ownership of your home.
Common Myths
1
The bank owns my home.
This is not true! The client(s) (homeowners) retain 100% ownership of their home and remain on title as the only owners. A reverse mortgage allows a homeowner to access up to 55% of the value of the home. A homeowner will never have to sell or move out before they are ready. This is true no matter how long they choose to stay in the home, or what happens to home prices. The only requirement is that property taxes, home insurance, and upkeep of the home are maintained.
2
You will have to pay taxes on the money you get:
Wrong! The money from a reverse mortgage in Canada is tax-free.
3
Upon the eventual sale of the home, I or my beneficiaries will owe more than the house is worth.
Not true! Because of home price growth, it is extremely rare that the mortgage balance will ever come close to the value of your home. Some lender will even guarantee that a borrower will never owe more than the fair market value of their home, at the time they leave their home.
Talk to me
Let me help you understand how a reverse mortgage can work for you & explain how these myths are untrue.