If you are a Canadian homeowner over the age of 55, a reverse mortgage may be a good option for you! A reverse mortgage allows homeowners to borrow against the value of their home without selling it. This can be a great way to access extra cash for retirement or to cover unexpected expenses. In this post we will discuss the steps to getting approved in Canada and also answer some common questions you may have.
The first step in getting approved is to speak with a qualified Mortgage Broker. Your Mortgage Broker will review your income, assets, and debts to determine your eligibility. They will also assess your home’s value and the current interest rates. To qualify for a reverse mortgage, you must own your home outright or have a low mortgage balance.
The next step is to complete a mortgage application. This application will ask for detailed information about your finances and your home. It is essential to be truthful on this application as lenders will verify the information you provide.
Once your application has been submitted, the lender will conduct a credit check and a property appraisal. They will also review your home’s title to ensure that you are the rightful owner.
If everything looks good, the lender will approve your reverse mortgage!
What happens if my reverse mortgage application is denied?
If your application is denied, the lender must provide a written explanation of the reasons for the denial. You may be able to reapply if you address the reasons for the denial.
What are the benefits of reverse mortgages?
Some of the benefits of reverse mortgages include:
- Access to extra cash for retirement
- It can cover unexpected expenses
- No monthly payments are required
- Your home remains yours and does not have to be sold
- You can continue to enjoy retirement living in your home
Are reverse mortgages safe?
Reverse mortgages are entirely safe. There are billions of dollars in contracts and the two primary lenders are financially solid, so you can be sure that your home is safe. This type of mortgage offers various flexible payment options, so you can choose the option that best suits your needs.
Check out this article where we debunk a few common myths about reverse mortgages.
Obtaining Independent Legal Advice (ILA) from a reputable lawyer is a definite must. Speak with a qualified Mortgage Broker today to learn more about how to apply for a reverse mortgage. See if this is a good option for you!
Can I use reverse mortgage money for anything other than home improvements and emergencies?
Yes! You can definitely use reverse mortgage money for things other than home improvements and emergencies. Check out this blog article that has some other common uses.
Do You Have More Questions?
If you are a Canadian homeowner over the age of 55, a reverse mortgage may be a good option for you! To learn more speak with a qualified Mortgage Broker today. If you have any other questions or would like to inquire about your suitability for this solution, we would be happy to help. Please contact us at (905) 351-8440 or firstname.lastname@example.org and we can review your options! For our undivided attention, you can also book a call by clicking our Book A Call Button in the top-right corner of this page.