One of the top providers of this product is CHIP (Canadian Home Income Program)
Couple of things to consider:
- Unlike a conventional mortgage and almost every other lending option, a reverse mortgage requires no regular principal or interest payments
- With a reverse mortgage, you will never owe more than your home is worth. Think of it as built-in insurance for your retirement future
- Your money can be provided to you right away (lump sum) or over equal installments.
- Generally, reverse mortgages allow you to borrow up to 55% of your home’s value. The total amount that can be borrowed is dependent on your age, the location of your home, the type of home, the condition of your home and the appraised value of your home.
- Many Lenders allow no income verification
While a conventional mortgage is meant to help Canadians afford to buy a home, a reverse mortgage was primarily designed to help Canadians 55+ access the cash they need while retaining ownership and title of their home.
It helps them get the cash they need to live a comfortable and secure retirement, without having to worry about regular mortgage payments.
| $150,000 | 6.34% | $1,795 | INTEREST WILL ACCUMULATE ON YOUR REVERSE MORTGAGE AT A RATE OF 6.34%, COMPOUNDED SEMI-ANNUALLY. OVER 5 YEARS, THE ACCUMULATED INTEREST WILL EQUAL $54,939. THE CLOSING FEE IS THEN ADDED TO THAT AMOUNT AND AVERAGED OUT OVER A 5-YEAR PERIOD. THAT IS THE WAY THAT A REVERSE MORTGAGE RATE APR IS CALCULATED. | 6.63% |
Always talk to your Broker/Agent before moving forward with any Mortgage decision. We can make sure this program fits your needs and is right for you, as opposed to a mortgage refinance.
