There are several different and flexible reverse mortgage options available depending upon your individual needs. Here are the facts about each product to help you decide which option might be right for you.
Standard Reverse Mortgage
This is the most popular product which allows you to access up to 55% of the value of your home and is deal for homeowners 55+ who are looking for an initial lump sum. If you do not take the full approved advance amount initially then will be able to access the remaining funds through subsequent advances in the future.
This product is best used for paying off stressful debt, renovations which could increase the value of your home or even buying a second home.
There is also another similar program that provides you with access to a higher percentage of your home equity but it is only offered in urban centres throughout Alberta, British Columbia, Ontario and Quebec.
This product is for homeowners that are looking to supplement their retirement income as it provides monthly advances in addition to a one-time lump sum.
The minimum initial advance is $20,000 or more and the planned advances start at $1000 monthly or $3000 quarterly. The amounts can be increased to fit your needs.
This products is best used for boosting your day-to-day lifestyle, increasing monthly cash flow or avoid drawing on your valuable investments by leveraging the equity you already have in your home without having to move or sell.
Open Reverse Mortgage
This is a short-term reverse mortgage loan which provides you with the flexibility to convert into a standard reverse mortgage at any time (with a fee) if you decide you want to keep the solution longer term.
The minimum loan is $25,000 and up to 55% of the equity in your home. This is a short-term financing solution without any prepayment charges.
This product is best used for bridge financing or as a short-term cash flow solution while avoiding high prepayment penalties.
To be eligible for any of the products you must be a Canadian homeowner 55+ and the home must be your primary residence.
No matter which product you select, here are the steps. Give me a call at 1-888-561-2679 or email me at [email protected] to setup an initial consultation and receive your free estimate.
If this is the best solution for you, we will then arrange an appraisal of your property to determine your qualification amount and set up the legal process to complete the reverse mortgage.
This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.