There are advantages to consider when receiving this type of mortgage financing:
Disadvantages to consider are:
In order to be eligible for a Reverse Mortgage you must be a Canadian homeowner and be age 55 or older.
The minimum advance amount is $25,000
The funds are provided to you either as a one-time lump sum or can be paid over a pre-determined amount of time
The interest rate charged is higher than a regular residential mortgage. Ask your mortgage broker for update on current rates available.
For this type of mortgage financing, the property must be your primary residence. (normally this means you have lived in the home for at least six months)
There are two lenders in Canada that provide Reverse Mortgages: HomeEquity Bank and Equitable Bank.
Lenders will generally consider the following when approving a Reverse Mortgage:
Lenders will consider property value and equity position to qualify you for this mortgage. Your income is not an important consideration.
Yes, initial costs include, application fee, appraisal fee and lawyer charges.
Our team is devoted to helping you achieve your long term goals. Enjoy options and possibilities that you may not have considered when sticking with traditional banking products. If your goals include paying down your mortgage faster or looking for a rental income to make some headway on your amortization we are happy to discuss all of your options. Your Kelowna Mortgage Broker is able to help you with your first mortgage or renegotiating the terms on an existing property. Call John Antle Mortgages in Kelowna today and let’s get started!