Taking Advantage of Home Equity via Reverse Mortgage

As a homeowner, you have built equity or value into your home. Now is the time to take advantage of your wise investment!

A “reverse mortgage” is a financial tool designed by the Canadian government as a form of financial relief for homeowners 60 years or older. It allows senior citizens to stay in their home, eliminate their current mortgage payment, and access their equity- tax- free! Unlike traditional home loans or second mortgages, no repayment is required until homeowner no longer occupies the property as their primary residence.

You can choose to receive you reverse mortgage income as regular monthly payment, in one lump sum amount, as a line of credit.

Since “reverse mortgages” allow you to pay no monthly payments, the mortgage amount you owe grows larger over time. As your mortgage increases, the amount of equity you have left after selling or paying off the loan generally grows smaller. The amount you owed at the conclusion of a reverse mortgage (when you no longer occupy the home) is the amount of the home’s value. Also, your home will continue to appreciate just the same as if you had a regular mortgage, increasing your equity as time progresses.