WHAT IS A REVERSE MORTGAGE?

A reverse mortgage is a loan secured against the value of your home (just like a conventional mortgage), except with a reverse mortgage, payments are optional. If you choose not to make payments, the interest that accumulates is added to your mortgage balance (this will never exceed your home's value). 

This type of mortgage is available to homeowners above the age of 55, allowing you to access equity while staying in your home and community, without having to sell/downsize.

You can opt for a lump sum to pay off debts, prepare for any large upcoming purchases/expenses, or simply give yourself a buffer for retirement. In addition, you can choose to take monthly advances to help supplement your retirement income. Interest will only accumulate on the funds advanced at that point in time. If you have an existing mortgage or home equity line of credit, this will be paid out from the reverse mortgage proceeds.

OUR PROMISE

We understand this can be overwhelming. Our top priority is to help address your concerns and answer your questions.

We promise to always:

• Listen carefully
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• Speak clearly and offer useful information
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• Respect you and your privacy
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• Never apply pressure

WHAT DOES THE PROCESS LOOK LIKE?

1️⃣    Discuss your options & needs

We will sit down together to chat through what make sense for you and answer any questions you may have.

2️⃣    Confirm your home's value

The lender will order an appraisal on your behalf to confirm the value of your home and determine how much you can access.

3️⃣    Review your commitment

We will review this together and assist you with the paperwork.

4️⃣    Obtain legal advice

We can help arrange an appointment with one of our trusted partners, or you are welcome to use your own lawyer.



EXAMPLE ILLUSTRATION

We will provide you with an customized report specific to your individual situation.

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FREQUENTLY ASKED QUESTIONS

Will the bank own my home?

No, you maintain title and ownership of your home. Keeping your property taxes and home insurance in good standing and maintaining your property is all that is required.

Will my government benefits be affected?

No, any government benefits you receive like OAS and CPP will not be affected by your reverse mortgage.

Are the funds from my reverse mortgage taxable?

No, the lump sum and/or monthly advances you receive from your reverse mortgage are non-taxable.

What happens if one spouse passes away? Will they be stuck with repaying our balance?

No, if one spouse passes away, the other may remain in the home without having to make repayment unless they decide to move or sell.

Can my mortgage balance ever exceed the value of my home?

No, your balance will never exceed the fair market value of your home. The vast majority of borrowers will have substantial remaining equity from their home after repaying their reverse mortgage.

How much equity can I access?

You can access up to 55% of the appraised value of your home, depending on your age, location, and type of home.

How much will my monthly payments be?

Payments are optional. If you choose not to make payments, the accrued interest is instead added to your balance, which is repaid when you move or sell.

How much are the closing costs?

Closing costs will include the legal fees of $1,795 - $2,495 and an estimated $500 - $900 for independent legal advice (this varies depending on the lawyer). Both of these costs will be deducted from the mortgage proceeds. The appraisal cost may need to be paid in advance (approx. $500).

What documents will I need to provide?

You will be asked to provide 2 pieces of ID, a copy of your current home insurance policy, your most recent property tax statement (with proof of payment or deferral), a void cheque, and a current mortgage/HELOC statement (if applicable).