Owen Sound Reverse Mortgage
Many Canadian homeowners opt for a reverse mortgage as a financial solution in their later years. They’ve worked hard to build up equity in their homes over the years and when they retire, reverse mortgages can turn that equity into financial benefits that they and their families need.
A reverse mortgage will give you access to the money you invested in your fully paid home. If you have little to no income, this can be a great way to stay in your own home while using it as a source of income at the same time. If you are 55 years old and above, we are more than happy to discuss your reverse mortgage options.
Intrend Mortgage Inc has expert local mortgage brokers who can guide you on how Owen Sound reverse mortgage works and help you get approved with ease. We will lay out all the advantages and disadvantages of a reverse mortgage and help you come to a well-informed decision.
If you choose a reverse mortgage, we can help you prepare all the required documents and follow all the necessary steps to successfully take money out of your property. Have more questions? Talk to our expert brokers now!
Call Intrend Mortgage Inc at (416) 945-0380 for your Free Consultation with a Reverse Mortgage Specialist!
How Reverse Mortgage Works
A reverse mortgage is one type of loan that is secured by your principal residence. It will provide you with tax-free cash without any mandatory ongoing payments. The bank or other lender you choose will give you money that can be up to 55% of your house’s current value. This amount can be paid in lump-sum, regular monthly payments, or a combination of the two.
If you choose to go with a reverse mortgage, you will remain as the owner of your home and will never be forced to move out or sell your property. This is true if you do the following:
1. Live in your house for at least six months per year
2. Keep your home in good order
3. Regularly pay your property tax
4. Adhere to your loan terms
The money you get out of a reverse mortgage can be put into several possible uses. You can use it to support your family, make renovations, pay your debts, pay for in-home care, or simply cover your daily expenses.
Your reverse mortgage’s interest will be calculated on the outstanding balance of both the principal amount and the interest throughout the loan’s duration. Over time, this outstanding balance will increase. The reverse mortgage must only be paid once the last remaining homeowner leaves or dies. Usually the property is then sold and the proceeds are used for repayment.
If you don’t have any liquid assets and need cash to cover your living expenses, a reverse mortgage can be the answer. By converting a percentage of your home’s value into cash, you will get a guaranteed income. Even better, you don’t have to worry about monthly payments to pay your lender back.
Requirements for Reverse Mortgage
Qualifying for an Owen Sound reverse mortgage is not as hard and complex as other loans. Lenders will typically only look at five particular things: your age, home equity, home appraisal value, home location, and current interest rates.
You must be no younger than 55 years of age and live in Ontario’s major urban centers. Your property should be your principal residence, meaning you live there for at least six months every year. It can be detached, semi-detached, condo, or townhouse, as long as it is not your second home nor cottage. Also, all titleholders of your residence should apply as joint borrowers.
Typically, the older you are, the higher amount of equity you will be given. This is because lenders expect you to have less time to spend it.
Advantages of Reverse Mortgage
Here are some of the advantages of getting an Ontario reverse mortgage:
- The loan requires no regular monthly payments.
- You don’t have to sell your home to access some of its value.
- The money you will get is entirely tax-free.
- Your borrowed money will not affect your Old Age Security or Guaranteed Income Supplements benefits.
- The house remains your property.
- You can choose how you want to receive your money.
- You don’t have to repay the loan until you choose to sell your home or pass away.
Disadvantages of Reverse Mortgage
However, like almost every other thing in the world, reverse mortgages have their disadvantages. Here are some of them:
- You have to pay a home appraisal fee, application fee, and closing fee.
- The interest rate tends to be higher than a traditional mortgage or line of credit.
- If you move out or sell your house after three years of acquiring a reverse mortgage, you will have to pay a penalty.
- If you die, the loan must be paid in full with its interest within only a limited amount of time.
- Lesser money will be left for children and other beneficiaries since the home equity will decrease as the reverse mortgage accumulates increasing interest over the years.
Best Owen Sound Reverse Mortgage Agent
Intrend Mortgage Inc understands each of our client’s needs for accessible cash to help in their daily expenses, investments, and other financial needs. If getting a reverse mortgage is the solution to your problem, our mortgage brokers are more than happy to help you get it.
If you choose to work with us, we will ensure that you get the best possible rates and terms. We will also handle all the necessary paperwork, ensuring that every detail will be done right and that no inconvenience of any form will present itself along the way.
Intrend Mortgage Inc can give you all the information you need to know about getting an Owen Sound reverse mortgage. We will answer all your questions and present you with options that will work well for your specific lifestyle and circumstances.
Fast Reverse Mortgage Approval
You may still be on the fence about whether or not an reverse mortgage is right for you. That is understandable. If you need cash and your home has substantial value, we will gladly lay down all your options and help you decide what needs to be done.
Whether you’re planning a reverse mortgage and need of professional help or if you are still testing the waters and want more information, our mortgage brokers are always ready to discuss your options with you.