Reverse Mortgage in Canada

Advantages of a Reverse Mortgage

If you’re 55 or over and own your own home then a reverse mortgage may be the right decision. You may be able to access the equity in your home and never pay any monthly mortgage payments. Dominion Lending Centers is one of the leading approved reverse mortgage brokers. We help our clients access up to 55% of the equity in their home. The money is tax-free and payment free. Let us help you meet your short and long-term financial goals and plan a successful retirement. Our specialists will guide you step-by-step through this mortgage process.

Benefits of a Reverse Mortgage in Canada

√ Access up to 55% of the equity in your home

√ The money you receive is tax-free cash

√ You do not need to be working to qualify

√ Make absolutely NO monthly repayments while you or your spouse live in your home

√ Use the money however you wish

√ Stay in your home (no need to move or sell)

√ Canadian reverse mortgages do NOT affect any government benefits you may already be receiving

√ You are still on the title (just like you would with any other mortgage)

√ Most owners have equity in their home when the mortgage loan is repaid

√ The estate is well protected

√ Save on Taxes! Use a Reverse Mortgage in Canada to invest, the interest charged on the loan is tax-deductible

How Does the Reverse Mortgage in Canada Work?

With a reverse mortgage in Canada, the homeowner continues to own their home and receive cash in their preferred way. You can receive the money as a lump sum amount or in monthly amounts, like a pay cheque or pension. The average property has increased in value over the past 15 years by 7.5% per year. Say your property is $1 million in value, that means your value increases each year by $75,000.00, the reverse mortgage on your home is $500,000.00 at 5%. Each year the interest accumulated is $25,000.00. This means that in one year you made no mortgage payments and your net worth still grew by $50,000.00.

When you take out a reverse mortgage in Canada, the balance of the loan slowly accrues over time... while at the same time the home's value continues to rise. This process ensures equity in the home over the long term. Regardless of market fluctuations, the Canada Reverse Mortgage lender guarantees that the loan balance will not exceed the fair market value of the home. In other words, you can never owe the lender more than the value of the home.

Why a Reverse Mortgage may be the perfect solution.

The most attractive feature of a reverse mortgage is you never have to make a mortgage payment. This provides so much financial freedom so you can get back to doing what you love. And best of all, funds received are TAX-FREE!

Reverse Mortgages Misinformation

There is a lot of misinformation out there on the internet. Largely because people do an internet search for “reverse mortgage” or “mortgages for seniors”. They fail to add the word CANADA or CANADIAN. Our financial system here in Canada and banking regulations are very different than those in other countries! When doing your research, be sure you are reading about the Canadian experience. All mortgages for seniors are protected by our Canadian laws, they are regulated by the Canadian Federal Government. The laws protect you. For instance, the laws ensure you will remain on the title to your home and you can never owe more than the value of the home. As long as you are still living in your home, you can never be forced to move or sell. These protections are guaranteed in writing.

Why Dominion Lending Centres?

Dominion Lending Centres will negotiate your rate for you. Rates are slightly higher than conventional mortgages, as the reverse mortgage lender is offering to lend money and not receive payment for an unpredictable period of time.

Things to Consider with a Reverse Mortgage

√ You and your spouse (if you are married) must both be at least 55 years old or older.

√ The amount of loan that you get varies depending on your age, the house value and the location of your home.

√ Eligible amounts are determined through an independent appraisal of the property.

√ Get pre-approved for the maximum amount initially, but only have a small amount advanced. If you require more funds at a later date, simply call to receive those funds.

Reverse Mortgages