Question 1

What is a Reverse Mortgage?

Accepted Answer

It is a loan against the equity in your primary residence. It is a truly mortgage in reverse as you make no payments back to the lender until the property is sold/no longer your primary residence. For many Canadians, a Reverse Mortgage is and will continue to be a regular piece of retirement planning.

Question 2

What do you need to qualify for a Reverse Mortgage?

Accepted Answer

1) Canadian home owner with equity in their primary residence 2) 55yrs old + 3) home value $200,000 + 4) owner occupied property (at least 6months of the year) 5) satisfactory credit report  *No health checks required.

Question 3

How much can I take out with a Reverse Mortgage?

Accepted Answer

It depends on your age and available amount that can be drawn; but can go up to 55% of the value of your home. The older we get, the more money that becomes accessible.

Question 4

What will my payments be on a Reverse Mortgage?

Accepted Answer

No payments, no money needs to be returned until you move or sell the home. You are though responsible for the maintenance and general care of the home, insurance, any condo fees and property taxes. Note that you are able to make voluntary repayments to the reverse mortgage.

Question 5

What are the costs to set up a Reverse Mortgage?

Accepted Answer

$995 setup (charged when closes from proceeds), an appraisal approx $350 and then 2 lawyers approx $2,500. Why 2 Lawyers?  For your protection. The first lawyer will be the ILA - Independent Legal Advisor and they sit with you and make sure that you not only understand the terms but that no one is influencing the decisions in any way that would not be in your best interests. The other lawyer will actually process the transaction - register with land titles, advance the initial money etc. for you.

YEG

780.916.2492 Alberta, Canada

Reverse Mortgage

faq's

STEP 1 to Buy a Home