Reverse Mortgage

The concept of a reverse mortgage is excellent! It allows you to tap into the equity that you have in your property in order to purchase and enjoy the better things in life. As long as you are 55 years of age or older, this could be the mortgage you’re looking for!

There are several factors, such as your age, location of your property, the market value of your property, and the amount of your outstanding mortgage (if any), which determine if you qualify for a reverse mortgage. If you qualify, you can go ahead and take out a reverse mortgage, then use that money as you wish. You will not have a single mortgage payment to make as long as you live in the property. If you’re retired and your income has diminished, you can use the reverse mortgage as a way to supplement this lost income, allowing you to continue living the same lifestyle as before retirement. If you’ve developed the travel bug, and would like to travel the world or escape the cold winter months, no problem! The money you get from your reverse mortgage is yours to do with as you please, tax free!

Types of Reverse Mortgages

There are two kinds of reverse mortgage programs. The first option allows you to access up to 55% of the market value of your home. Under this program, you would receive your funds in one lump sum payment. This type of reverse mortgage is a good choice if you want to improve your family’s financial situation or pay off nagging debts. It is also suitable if you are looking to take a well-deserved vacation.

The second type of reverse mortgage allows you to access up to 40% of your home’s market value. This program allows you to receive your money in monthly or periodic advances. You can even choose a combination of a lump sum payment, and the remainder in monthly or periodic installments.

This kind of reverse mortgage is ideal if you are seeking a more comfortable day-to-day lifestyle. With the extra money available on a continuing basis, it may prevent you from having to dip into your investment portfolio.

Eligibility

• You must own a home in Canada
• This home must be your primary residence
• You must be 55 years of age or older

Benefits

• The money that you receive is tax free
• The money that you receive will not affect the amount of any pension or supplement  which you may be receiving
• As long as you or your spouse continue to live in your home, you will never make any mortgage payments
• You retain ownership of your home
• You keep all the remaining equity in your home when the mortgage is repaid or the house is sold

Obligations

• You must continue to maintain your home
• You must continue paying your property taxes as well as home insurance

If you would like to check on your eligibility for a reverse mortgage or get an idea of how much money you might receive, get in touch with Team Levine! You can join thousands of other home owners who have discovered the benefits of reverse mortgages. Team Levine will assess your eligibility and walk you through the process.