Frequently
Asked Questions

Let’s make it clear: my guidance, the free 90-second reverse mortgage assessment, and all the advice I provide about reverse mortgages are completely free. You won’t ever have to pay a penny for my reverse mortgage advice—now or in the future.

There is no fee for my services. I am here to guide you and provide you with a comparison and assessment of your options.

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What is a RM?

A reverse mortgage is a specialized loan available exclusively to Canadian homeowners aged 55 and older. It’s called a “reverse” mortgage because, unlike traditional mortgages, it doesn’t require regular monthly payments.

To qualify, you must be at least 55 years old, and the maximum you can borrow is up to 55% of your home’s value. In most cases, the loan amount falls between 10% to 55% of the appraised value of your property. While interest is applied, it’s added to the total loan balance instead of requiring monthly payments.

What is a Reverse Mortgage?

A reverse mortgage is a unique loan designed for homeowners aged 55 and over. It allows you to tap into your home’s equity and turn it into tax-free cash, all while continuing to live in your home. Unlike a traditional mortgage, there are no monthly payments required, so you can enjoy the financial benefits without worrying about repaying the loan until later.

How Do I Get a Reverse Mortgage?

Currently, the “Big 5” Canadian banks – RBC, BMO, CIBC, Scotiabank, and TD – do not offer reverse mortgages.

However, there are other lenders who provide reverse mortgage products depending on your location. These include HomeEquity Bank (offering the CHIP reverse mortgage), Equitable Bank, and Bloom. Additionally, companies like Manulife and Fraction offer similar products that may work for your financial situation. Feel free to contact me if you’d like more information or guidance on these options.

How Does It Work?

You can typically borrow up to 55% of your home’s appraised value. The amount you qualify for is based on factors such as your age, the location, and condition of your property, as well as the specific lender’s criteria. Importantly, the money you receive won’t impact your Old Age Security (OAS) or Guaranteed Income Supplement (GIS) benefits. The loan is repaid when you sell your home, move out permanently, or pass away, and repayment will include the loan amount and accrued interest. However, thanks to built-in safeguards, you or your estate will never owe more than your home’s fair market value at the time of repayment, protecting both you and your heirs.

Is a Reverse Mortgage Right for You?

Deciding on a reverse mortgage is a significant financial decision. It offers financial freedom, flexibility, and peace of mind, but it’s important to weigh the benefits and considerations.

Benefits of a Reverse Mortgage:

No Monthly Payments: Access your home equity without the obligation of monthly repayments.

Tax-Free Funds: The cash you receive is not considered taxable income.

Total Flexibility: Use the money however you need—whether for home renovations, travel, healthcare, or as supplemental income.

Retain Homeownership: You remain the full owner of your home, maintaining complete control and title.

How Much Does Your Service Cost?

How Much Money Can I Get?

Three main factors determine how much you can qualify for with a reverse mortgage:

The location of your home

Your age

The type of property you own

You may be eligible to access up to 55% of your home’s value, though most borrowers receive between 10% and 55%.

Interested in finding out how much you could receive? I offer a free, no-obligation assessment. Simply fill out my assessment form, and I’ll let you know your options and the amount you qualify for. Click here to get started.

What if I Already Have a Mortgage?

If you currently have a mortgage, you can still take out a reverse mortgage. The process is similar to refinancing your mortgage with another lender—your existing mortgage will be paid off, and any remaining funds will be yours to use as you choose.

A reverse mortgage allows you to eliminate monthly mortgage payments while continuing to access the equity in your home.

What Paperwork is Needed?

While reverse mortgages are generally easier to obtain compared to other types of home equity loans, they still involve borrowing significant amounts of money. This means that while the process is simplified, it’s not entirely effortless.

To qualify, you must be at least 55 years old, and an assessment of your home’s value is required. Other factors, such as whether you plan to make monthly payments, are also considered. For more detailed information on eligibility and requirements, feel free to get in touch with me.

What About Alternatives?

As an independent mortgage professional, I don’t work for any specific lenders. My goal is to ensure that you have a clear understanding of all available options, including how a reverse mortgage could benefit you.