Reverse Mortgages

The reverse mortgage market in Canada is under $6 billion, but has recently experienced a 200% year-over-year growth. APPLY NOW.

A reverse mortgage is a loan that enables homeowners to access their home equity without selling their property. It allows you to borrow a percentage of your home’s value, up to 55%. The amount you can borrow is influenced by factors such as your age, the appraised value of your home, and the lender’s policies. Unlike traditional mortgages, you are not required to make monthly payments on a reverse mortgage. Instead, repayment is typically due when you move out, sell the home, or the last borrower passes away.

Everything was very clear, and well explained. The financial projections showing the implications in different scenarios were clear. It was adaptable to our situation.

– Arnold Dwinski

Eligibility for a Reverse Mortgage in Canada:

To qualify for a reverse mortgage in Canada, you must meet the following criteria:

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Homeownership

You must be a homeowner

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Age Requirement

You must be at least 55 years old

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Home Title

All individuals listed on the home’s title must be at least 55 years old to be eligible

Considerations for Application: When applying for a reverse mortgage, your lender will consider factors such as your age, the age of others on the home’s title, location, condition, type, and appraised value of the home.

Primary Residence: The home securing the reverse mortgage must be your primary residence, meaning you live in it for at least six months a year.

How a Reverse Mortgage Works:

The proceeds from your reverse mortgage, will first pay off and close any existing loans or lines of credit secured by your home, including mortgages and home equity lines of credit (HELOC).

Once those are paid off these debts, you can use the remaining funds from the reverse mortgage for various purposes, such as:

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Home repairs or improvements

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Regular bill payments

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Healthcare expenses

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Debt repayment

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Investments

Reverse Mortgages

NO regular payments are required on a reverse mortgage

You can choose to repay the principal and interest in full at any time. But keep in mind that there may be a fee for paying off your reverse mortgage before the agreed-upon term.

Repayment Scenarios: You are obligated to repay the remaining amount owed on your reverse mortgage when:

Selling Your Home

If you decide to sell your home, repayment becomes due.

Moving Out

Repayment is required if you move out of your home permanently.

Last Borrower's Passing

In the event of the last borrower’s death, the reverse mortgage must be repaid.

Different Options for Receiving Funds:

When it comes to a reverse mortgage, you have flexibility in how you receive your funds. Here are the various options available:

1. One-Time Advance (Initial Advance): You have the choice to receive the maximum eligible amount as a single lump sum upfront. This means you would receive all the funds at once. It’s important to consider whether you prefer an adjustable or fixed interest rate term. Additionally, opting for a lump-sum advance may grant you access to lower interest rates specific to that lump-sum payment.

2. Single Advances: If you decide not to take the maximum eligible amount upfront, you have alternatives for the remaining funds. Remember, there is a minimum initial advance requirement of $25,000. You can:

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Choose between adjustable and fixed interest rate reset terms.

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Set up a schedule for recurring advances at regular intervals.

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Leave room to add single advances at a later date, giving you the flexibility to access funds when needed.

Having the ability to select from these advance options allows you to tailor the distribution of your funds to best suit your financial goals and needs.

Why choose Wise Equity

At Wise Equity we have close connections with each of the 4 reverse mortgage lenders in Canada. By leveraging Our network combined with our experience in reverse mortgages we can offer our clients the most competitive rates, terms and options on the market. We pride ourselves with integrity and offer our clients unique financing solutions the help them reposition their finances.

*Applying won’t affect your credit score!

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