What is a Reverse Mortgage?
A reverse mortgage is an innovative investment and estate management product that has been available in the Canadian and provided by a lender that has been in 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.
To qualify for a reverse mortgage you must be a minimum age of 55 years or older and own a home or condo. 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.
The plans are generally very flexible and allow lump sum payments or monthly annuity type payments, and you never have to leave your home. 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. Please contact us for more detailed information.