Reverse Mortgage in Ottawa
If you are over 55 years of age and want to utilize the home equity you have built over the years, a reverse mortgage might be the right decision for you.
Borrowing Made Simple’s team of knowledgeable brokers has been assisting homeowners with mortgage decisions for years. With us at your side, we’ll lay out all your options so that you can be confident in your equity release decision.
Get in touch with us today to book a consultation.
What Is a Reverse Mortgage?
A reverse mortgage is a mortgage loan that allows homeowners to use their home’s unencumbered value to address other financial responsibilities. One of the main benefits of taking out a reverse mortgage loan is that it allows the homeowner to use their home’s equity without having to sell their house. The amount that can be borrowed depends on the age of the borrower and the value of their property.
How to Qualify for a Reverse Mortgage?
To qualify for a reverse mortgage, the homeowner(s) must be over 55 years of age. The property must be their primary residence, and the home must be of a certain value.
To find out more about qualifications, get in touch with the team of specialists at Borrowing Made Simple today.
How Does a Reverse Mortgage Work?
If a homeowner is interested in taking out a reverse mortgage they should have their home professionally appraised. Typically, the higher the value of the property, the more money the borrower will be able to utilize. Once the home is appraised, the homeowner should get in touch with our brokers and set up a consultation.
During the consultation, we will get an understanding of your circumstances and shop around for lenders that offer competitive rates. Once a lender approves the reverse mortgage loan, the borrower must pay off the existing mortgage in full. Many borrowers will use the loan to pay off their primary mortgage.
From there, the homeowner will be free to use their credit to pay off home improvements, medical bills, outstanding loans, or any other financial responsibilities they have. The owner will not be obligated to pay off the loan, until they choose to sell the home, or until they die.
What Are the Pros and Cons of a Reverse Mortgage?
There are several reasons to consider seeking out the professional guidance of our mortgage brokers when weighing the advantages and disadvantages of taking out a reverse mortgage. We’ve listed some of the considerations to keep in mind below:
- You access your home’s value without selling it
- There aren’t any regular loan payments while you remain a resident of the dwelling
- The money that you receive is tax-free
- Old-Age Security (OAS) or Guaranteed Income Supplements (GIS) are not affected
- Higher interest rates and additional fees (appraisal, setup, etc.)
- Prepayment penalties
- The home’s equity will continue to decrease while the loan is unpaid
- Your estate is responsible for the balance in the event of your death
Be sure to reach out to our brokers today for a more comprehensive understanding.
Find the Best Reverse Mortgage Rates with Borrowing Made Simple
If you are interested in a reverse mortgage, Borrowing Made Simple has the skills and expertise you need to make an informed decision. Take advantage of our first-rate approach to reverse mortgages and contact us.
Set up a consultation to get started today!
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