To qualify you and your spouse must be 55 years of age or older. The amount that you will qualify for depends on your age, the location of your home, and the value of the house. All payments are tax-free.
If you are only wanting a small amount at the time of applying, you can get pre-approved for the maximum allowed and get paid the amount needed while still having access to the full-amount, if needed.
You only pay interest on the amount that has been loaned to you, not the pre-approved amount.
Your house remains in your name. You will get all the equity left in the home after the reverse mortgage is paid off. The reverse mortgage loan does not have any affect on your Old Age Security or Guaranteed income supplements benefits you might receive.
The lender guarantees that your estate is protected and that no money will be left owing after the reverse mortgage is paid off.
You retain 100% ownership of your home. The title and ownership of your home belong to you, not the bank.
The money you get is tax-free. It also doesn’t impact your Old Age Security or Guaranteed Income Supplement. Meanwhile, keep your investments growing without being taxed for withdrawing from your portfolio.
You decide how to spend the money you get. You can use the net proceeds from your Reverse Mortgage to make home renos or retrofits, pay unexpected expenses, financially help children or grandchildren, purchase a second property, even take a dream vacation.
There are no regular mortgage payments required. Once you decide to leave your home, the interest and principal and any applicable charges are simply paid off from the proceeds of the home sale. You are still required to maintain your property taxes, fire insurance and condominium or maintenance fees.