Top 5 questions people ask about reverse mortgages in Canada
What lending institution will provide the Mortgage Funds?
Currently, there are 2 lenders for a Reverse Mortgages In Canada – HomeEquity Bank and Equitable Bank,
Both of these lenders are Schedule 1 banks – similar to RBC, Bank of Montreal, and Scotiabank so their activities are monitored accordingly.
Are there age restrictions on Reverse mortgages in Canada?
In Canada, all people on the title must be 55 years of age or older to qualify.
What if I already have a Mortgage on my home?
You can still take out a Reverse Mortgage, but the first funds are used to pay off the existing mortgage as a Reverse Mortgage must be a First charge on your home.
Will I lose my government subsidy if I take out a Reverse Mortgage?
The income from a Reverse Mortgage is not taxable and therefore does not affect any government subsidy related to income.
How much money can I get from a reverse mortgage in Canada?
There are three main factors considered in the amount of money you would be eligible to receive. a.) The value of your home b.) the ages of all people on title that would be applying for the mortgage c.) The property type. The maximum allowed on a Reverse Mortgage is 55% of the value of the property.
Hopefully, we’ve helped you answer some of the questions you have about reverse mortgages in Canada. If you’re looking to dig deeper check out these 6 crazy false claims on why reverse mortgages are bad.