A reverse mortgage is available to homeowners age 60 and older and can be considered an interesting solution for those not wanting to move and needing more money. You want to raise or maintain your lifestyle, or reduce your monthly payments? With a reverse mortgage, you do not need to make any payments as long as you live in your house.

Here are the major features of this product and some important facts to remember:

  • 60 years old or more, principal residence, 50 000$ and more
  • Type of home and location must qualify
  • No eligibility criteria associated with health, credit rating or revenue
  • Maximum amount of mortgage is 40% of appraised value, based on type, location, and borrowers’ age.
  • Funds are income tax free
  • Most often, funds are received in a lump sum or can be received over time
  • Any outstanding loans guaranteed by the property must be retired with the disbursement of funds
  • No regular payments are required
  • The full amount of capital and interest are only due when the property is sold
  • You may pay back in full at any time the reverse mortgage (penalty of usually 4 months interest)
  • The title of the property remains in the clients name and not the institutions’
  • You’re responsible for property taxes, maintenance of the property as well as fire insurance and condominium fees.
  • Charges or cost: You must pay for an appraisal (175$-400$), you must also pay for independent legal advice and closing costs (these two last fees are deducted from the funds received. Approximately 2,000$ total). You will need to meet the notary only once.
  • Variable and fixed rates available, the interest is added to the capital
  • Rate discounts are available under certain conditions
  • In most cases, 50% of equity remains in your home for your succession when the house is sold since you didn’t have any payments to make on the mortgage.
  • You may use the funds received to pay for renovations, traveling, paying off bills, gift money, investments, all without a single payment.

Please do not hesitate to call me for more information, should you have any questions or should you like to schedule a meeting in person.

You may reach me for a reverse mortgage at this phone number: 514-945-6472

Thank you!

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