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.
