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A reverse mortgage broker can help you find the best reverse mortgage for your needs. Reverse mortgages are loans that allow you to borrow money against the equity in your home without having to sell your home. They are available to homeowners 55 years or older with significant home equity. Three financial institutions offer reverse mortgages in Canada: HomeEquity Bank, Equitable Bank, and Bloom Financial. You can get a reverse mortgage from HomeEquity Bank or through mortgage brokers. Equitable Bank’s reverse mortgage products are available through independent reverse mortgage brokers who provide reverse mortgage services.
When you apply for a reverse mortgage, your lender will consider your age and the age of other individuals registered on the title of your home, where you live, your home’s condition, type, and appraised value. The home you use to secure a reverse mortgage must also be your primary residence. This usually means you live in the house for at least six months a year.
Some benefits of using a reverse mortgage broker include:
They can provide you with personalized advice and guidance throughout the process.
Reverse mortgages can be a good option for homeowners at least 55 years old and with significant home equity. They can provide several benefits to retirees, including:
Access to cash: Reverse mortgages allow you to access the equity in your home without having to sell it. This can be a good option if you need cash for living or other expenses.
No monthly payments: With a reverse mortgage, you don’t have to make any monthly payments. Instead, the interest on the loan is added to the loan’s balance. You only have to repay the loan when you sell your home or pass away.
Flexibility: Reverse mortgages are flexible and can be used for various purposes. For example, you can use the money to pay off debt, make home improvements, or travel.
Peace of mind: With a reverse mortgage, you can stay in your home for as long as you want. You don’t have to worry about losing your home or being forced to move out.
Tax-free: The money you receive from a reverse mortgage is tax-free and won’t affect your Old Age Security (OAS) or Guaranteed Income Supplement (GIS) benefits.
Reverse mortgages are becoming increasingly popular in Canada. According to a report by the Office of the Superintendent of Financial Institutions, the outstanding balance of reverse mortgage debt reached $4.42 billion in October 2020, a 12.25% increase over the same month the previous year. Here are some of the most popular ways Canadians use the money from a reverse mortgage:
The money you receive from a reverse mortgage is tax-free and won’t affect your Old Age Security (OAS) or Guaranteed Income Supplement (GIS) benefits. However, speaking with a financial advisor or a reverse mortgage broker is vital to determine if a reverse mortgage is right for you. They can help you understand the costs and benefits of a reverse mortgage and whether it’s the best option for your financial situation.
