Reverse Mortgages

If you’re like many homeowners in Southern Ontario who cannot truly afford their retirement years, the reverse mortgage was designed to provide for you! Many Ontario seniors find themselves in a situation where they live within their biggest asset. Often dependent on the Old Age Security (OAS) or Guaranteed Income Supplement (GIS) benefits you may be getting, they are house rich – but cash poor. 

A reverse mortgage, available to those aged 55 and over, can help in those situations. Often used as a tool for obtaining much needed cash, a reverse mortgage can tap into the equity that’s been built in the house through responsible home ownership.

Who Is The Reverse Mortage Intended For?

In a nutshell, the reverse mortgage is a home equity loan. You still own your home. You are borrowing a certain amount of money using the equity in your home as collateral. With a reverse mortgage, there is no monthly payment, no repayment is required until the borrower passes away, chooses to sell the house, or permanently moves out of the home. The best part is, you don’t pay tax on the money you borrow.

You can use all your available funding, but the loan is not due until the last of the borrowers reach a triggering life event. At that time, the home is sold to repay the loan plus accrued interest and other charges. Any surplus from the sale beyond these costs is remitted to the borrower or his/her estate.

You can borrow up to 55% of the current value of your home and the maximum amount you are able to borrow depends on:

• Your age
• Your home’s appraisal value
• Your Ontario reverse mortgage lender – Weisz Choice
  

How Do You Qualify For A Reverse Mortgage In Ontario?

In order to qualify for a reverse mortgage in Ontario, you must: 

• Be a homeowner 
• Have a low enough balance on the existing mortgage that it can be paid off from the proceeds of the reverse mortgage
• All individuals on the home title must be 55 years or older
• You must occupy the home as your primary residence – for the majority of the year

Before getting a reverse mortgage, you must first pay off and close any outstanding loans or lines of credit secured by your home. These can include a mortgage and a home equity line of credit (HELOC), and you can use the money you get from a reverse mortgage to do this. 

The amount of the loan is based on:

• The age of the youngest borrower
• The appraised amount of the property
• No income or credit is required
  

Who Is The Reverse Mortage Intended For?

Here’s how it works:

• Qualifying homeowners can choose to receive tax-free payments from reverse mortgage lenders either on a monthly basis, in a lump sum, or as a line of credit.
• No income or credit checks are required
• No repayments are required while a borrower lives in the home
• Government benefits are not affected
• Reverse mortgage lenders recover the loan amount, plus interest when the home is sold (because owners choose to move, or pass away)
• When the loan is paid in full, all equity associated with the property will be distributed to your heirs

Weisz Choice Mortgage has years of experience funding fast and fair reverse mortgage loans across Southern Ontario. Our Ontario mortgage brokers will speak to you and your family about the pros and cons of a reverse mortgage, help you understand how a reverse mortgage works, and how it can affect your home equity over time. Our reverse mortgage application process is straightforward, simple, and requires just a few steps to complete. We are always upfront about all costs associated with your reverse mortgage and there are never any surprises!

Contact us today for your free reverse mortgage consultation to discuss your unique needs.