Reverse Mortgages
Reverse Mortgages in Canada:
A Comprehensive Guide
If you are a senior homeowner in Canada and are looking for a way to tap into your home equity, a reverse mortgage might be a suitable option for you. A reverse mortgage allows you to convert a portion of the equity in your home into tax-free cash without having to sell or move out of your home. This guide will provide you with a comprehensive understanding of reverse mortgages in Canada, including how they work, eligibility requirements, benefits, and risks.
What is a Reverse Mortgage?
A reverse mortgage is a type of loan that allows seniors to access a portion of the equity in their home without having to sell or move out of their property. Unlike traditional mortgages, which require you to make monthly payments to the lender, with a reverse mortgage, the lender pays you in the form of a lump sum or regular payments. The loan is repaid when the home is sold, typically after the borrower has passed away or moved out of the property.
How Does a Reverse Mortgage Work?
To be eligible for a reverse mortgage in Canada, you must be at least 55 years old and own a home that is your primary residence. The amount you can borrow depends on your age, the value of your home, and the equity you have in your property. Typically, you can access up to 55% of your home’s value through a reverse mortgage.
The loan is secured by your home, and interest accrues on the outstanding balance. However, you are not required to make any monthly payments, and the loan is only due when the last surviving borrower has passed away, sold the home, or moved out of the property.
Benefits of a Reverse Mortgage
One of the main benefits of a reverse mortgage is that it allows you to access the equity in your home without having to sell or move out of your property. This can be particularly beneficial for seniors who may need extra cash to cover living expenses, healthcare costs, or home renovations.
Another benefit is that the loan is non-recourse, which means that the amount owed can never exceed the value of the home. This means that you or your estate will never owe more than the value of your home, even if the loan balance exceeds the home’s value at the time of repayment.
Risks of a Reverse Mortgage
While a reverse mortgage can be a useful financial tool for seniors, there are also risks associated with this type of loan. One risk is that the loan balance can increase over time, potentially reducing the amount of equity you have in your home. This can make it more difficult to sell or transfer ownership of the property in the future.
Another risk is that interest rates can fluctuate over time, which can affect the amount of money you owe on the loan. Additionally, the fees associated with a reverse mortgage can be higher than those of a traditional mortgage, which can eat into the equity you have in your home.
Simply put...
A reverse mortgage can be a viable option for seniors who are looking to access the equity in their home without having to sell or move out of their property. It is important to carefully consider the benefits and risks of this type of loan before deciding whether it is the right option for you. If you are considering a reverse mortgage, it is recommended that you consult with a financial advisor or mortgage professional to help you make an informed decision.
We Offer A Range of Solutions For All Your Reverse Mortgage Needs!
A home equity line of credit or HELOC is a line of credit taken out by a borrower to access the equity in their home. The amount you can access is based on the amount of available equity in your home, which is determined by subtracting the appraised value of your home relative to any existing mortgages. The more equity you have available, the larger the line of credit amount you can qualify for. Whatever the reason you have is for needing to access your equity, HELOC loans are a great solution that allow you to access equity with flexible terms and payment options.
Why Choose Burke Financial
While many financial institutions may offer 2nd mortgages in Ontario, finding a lender that fits your personality and your financial needs is easier said than done. That is unless you have a mortgage brokerage specializing in precisely that.
Burke Financial is an experienced mortgage broker that will help you get the best interest rate for your situation. We access our vast network of private lenders, MICs, banks, and investors to find the right match. We invest our time and resources with as much care as you’ve put into owning and maintaining your home.
At Burke Financial, we understand that taking out a second mortgage in the GTA and other cities across the province is a big deal, and we don’t take it lightly. We have ample industry experience helping people from all over Ontario get the best mortgage rates and will do everything to make sure you get the best possible deal.
Our team will help you weigh your options and identify the right type of mortgage product for you. A 2nd mortgage might be the right solution for you!
We’re always happy to answer questions to help our clients better understand the process. Apply now to get in touch with one of our mortgage broker specialists.
+$0
Millions in Loans Funded
+$0
Millions Dollars Saved for Clients
+0
Happy and Satisfied Customers
Frequently Asked Questions
Mortgage brokers are licensed financial professionals that have the resources to find the lowest rates and the appropriate payment plans for their clients. Working with a broker will save you time and ensure you get the best possible deal.
A mortgage broker acts as the middleman between you and the extensive paperwork involved on your behalf for a set fee. They are often able to foresee problems that could arise during the application process and tailor your application based on what each lender needs.
The role of a mortgage broker is to act as a connection between the borrower and the lender to secure a loan on behalf of the individual or their business. Their responsibilities include negotiating rates, dealing with the paperwork, and facilitating an agreed-upon loan and payment plan
One of the most significant benefits of working with a broker is their extensive network, as they have the tools and resources to identify and obtain the loan that will fit your needs.
A mortgage broker compiles a homeowner’s financial documents, accesses their credit history, and confirms current and past employment to present an application to multiple lenders. They help negotiate the terms and conditions of your payment plan and, once the loan is agreed, will work with the lender to ensure a smooth and efficient transaction.
Mortgage broker fees in Ontario vary based on your unique situation and the solution you are seeking. Contact us today for a more personalized estimate of what you can expect your fees to be.
Owning a home is an investment that deserves detailed attention and care. When unexpected expenses occur, or you need to consolidate your debts, it’s essential to find the right broker to step in and offer a solution tailored to your financial needs. We operate with a vast network of lenders, including subprime mortgage lenders across the province, and we’ll work diligently to find the right match for our clients.
At Burke Financial, our mission is to give homeowners across Ontario the best possible borrowing experience through a high level of service and expertise.
When you work with us, you’re working with an award-winning team that specializes in getting even the toughest of applications approved. We’re putting money in your pocket faster, so you can invest in your future.
Burke Financial offers mortgage broker services, with a specialty in subprime mortgages, across the province of Ontario.
At Burke Financial, we know that each homeowner’s experience is unique. We offer a personalized approach and help connect our clients with subprime lending options across Ontario. From day one, we treat each interaction with our clients as a chance to change their borrowing experience to a positive one.
We take the time to understand what our clients are looking to accomplish with their applications. We personalize short-term and long-term solutions to help our clients achieve long-term financial health.
We look at our client’s main priorities to make sure we shape the optimal payment amounts, term length, prepayment privileges, interest rates, and much more. We know how important it is to align our clients with reasonable rates and terms and educate them on areas like an exit strategy to make sure they are always on the right path.
As an industry-leading Mortgage Brokerage, we leverage our vast network of banks, institutions, MICs, private lenders, and investors to connect our clients with some of the best lending options.
Even if your credit score is below 650, our vast lending network allows us to deliver approvals for even the most complex applications. We believe every homeowner deserves to make the most of their home’s equity. We negotiate on your behalf and shop your application to multiple lenders to get you the most competitive rates and terms.
With our quick turnaround times, we can put money in your pocket in as little as 48 hours. Our goal is to deliver the best possible results for our clients and deliver them fast!
Communities We Serve
We provide service throughout all of Ontario with a focus on the following cities:
Contact Us
Today
