What is a Reverse Mortgage?

A reverse mortgage is an innovative investment and estate management product that has been available in the Canadian and are provided by several  lenders, some that have been in this business for over 28 years.

With the dramatic increase in home residential property values, combined with the post war baby boomers entering their senior years, it has become more popular with active seniors looking for innovative ways to supplement their retirement income.

Who can qualify for a Reverse Mortgage?

To qualify for a reverse mortgage you must be a minimum age of 55 years or older and own a home or condo.

Tell Me More About the Money – How Much Can One Receive?

The lender will generally provide an equity loan of up to 55% of the value of the property. The specific dollar amount you will receive will depend on your age and that of your spouse, the type of home and its location, as well as any current mortgage or other debts existing against it.

Flexibility is Key – What Options Exist?

The plans are generally very flexible and allow lump sum payments or monthly annuity type payments, and you never have to leave your home.

But What About Taxes? Is the Money Tax-Free?

The major benefit of a reverse mortgage is that this money that you receive is tax free. These funds are not added to taxable income, and therefore do not affect things such as Old Age Security (OAS), or Guaranteed Income Supplement (GIS) government benefits that you are currently receiving or expect to receive.

How Does a Reverse Mortgage Impact Inheritance?

It’s an important consideration. A reverse mortgage can affect the inheritance you leave behind. We can discuss how it works and what to expect.

What Happens if I Want to Move?

Thinking about a change of scenery? We can talk about what happens if you decide to sell your home or move out while under a reverse mortgage.

Got More Questions? Alberta Mortgages is Here to Help!

This is just the beginning of the conversation. Do you have more questions? Concerns? Ready to explore how a reverse mortgage could fit into your financial plan? Reach out to Alberta Mortgages, and let’s talk. Your retirement could be more comfortable than you think!