A reverse mortgage is an increasingly popular option for homeowners over the age of 55. Essentially a loan, a reverse mortgage will enable you to keep your home and access your home’s equity, so you can achieve your goals or consolidate your debts without impacting your Old-Age Security (OAS) or Guaranteed Income Supplement (GIS) benefits.

Benefits of a Reverse Mortgage

There are plenty of good reasons to apply for a reverse mortgage. A reverse mortgage can help you:

1. Enjoy your retirement and keep your home

A common concern that many retirees face is the struggle to maintain the costs associated with home ownership on a reduced income.

A reverse mortgage will allow you to access the equity in your home without having to sell. The funds that you access do not need to be repaid until you move out of your home, sell your home, or the last borrower passes away.

The equity in your home can be received as a lump sum, as regular payments, or a combination of the two options.

The payments are tax-free income, so your OAS and GIS benefits will not be negatively impacted. As an extra bonus, if you decide to purchase investments, the interest you earn is tax deductible.

2. Receive funds from the equity in your home as cash

3. Repay your loan at any time

Unlike a mortgage, where the funds need to repaid each month, your reverse mortgage can be repaid at any time. This allows you the flexibility to look after your needs and wants without worrying about timed repayments.

Do I qualify for a reverse mortgage?

The eligibility for a reverse mortgage is not that complicated. The regulations stipulate the following:

  • You must be a homeowner.
  • You must be at least 55 years of age. If your spouse is on the title, they must also be at least 55 years of age.
  • If you have a spouse and you are both on the title of your home, then you most both be listed on the reverse mortgage.
  • The home you are using to secure your reverse mortgage must be your primary residence.
  • You must have lived in your home for at least six months before applying.

What can I use my reverse mortgage loan towards?

The funds you acquire from your reverse mortgage can be used for a wide variety of things including:

  • Completing renovations
  • Going on a vacation
  • Paying down debt
  • Making investments
  • Taking care of health care expenses
  • Helping a child or grandchild pay for their education or their first home
  • Catching up on bills and other payments

How Fran Can Help

“Life is filled with change and I know how important it is for homeowners to stay in their homes. A reverse mortgage can be the financial solution to your life goals and help you live the life you want.”

Applying for a reverse mortgage offers homeowners a lot of possibilities and you want someone who will help you understand your options so you can make the right choices. Fran will help you get the right reverse mortgage for your life.