Reverse Mortgages in Ancaster, Ontario
You're In Control with a Reverse Mortgage
Reverse mortgages are sometimes described as a "reverse mortgage," but that's not technically correct. Reverse mortgages are actually home equity conversion loans, or HECMs.
This is because they're similar to conventional mortgages in that they allow homeowners to borrow against the value of their property, and also because they can be used for many different purposes—from paying off existing debts to making home improvements and building an emergency fund. However, unlike a conventional mortgage where you need to repay the loan over time by making monthly payments (or some other payment schedule), with a reverse mortgage you don't make any payments until the borrower passes away or moves out permanently. This is why it's called "reversing" the order of things: The borrower gets money now instead of later!
How it works?
A reverse mortgage is a loan that allows homeowners to convert a portion of the equity in their home into cash. It's been around since the 1970s, but its popularity has increased tremendously in recent years as it's become more widely available to first-time or low-income homebuyers.
The homeowner receives a lump sum or monthly payments based on how much they owe and when they took out the loan. The borrower does not have to pay back this loan until they move or die—and even then, sometimes there are no payment requirements at all!
If you are 55 and older.
Your lender will also consider your age, as well as the age of any co-borrowers or spouses who live in the home. Many lenders set a maximum borrower age of 70 to 75, and some won't lend to people over 85. If you're older than these ages when you apply for a reverse mortgage, you may still meet the income requirements but not the age requirements.
A reverse mortgage is a way to access the equity in your home. You don't have to repay it until you sell your home or move permanently. It's not a loan, but rather a line of credit that allows you to draw up to 55% of the value of your home, minus any outstanding mortgages and other liens on the property (such as taxes). You can use the money for anything and don't need to worry about making payments until you're ready.
Additionally, if you live in Ontario currently own a home worth less than $850,000 and are at least 55 years old or older (or have an eligible dependent with an income), then this may be an option for you!
You worked hard to become a homeowner, and it's important to us that we keep it that way. With a CHIP Reverse Mortgage, you always maintain control of your home*. In other words, you will never be forced to sell or move as a result of changing home values or earning power (remember, there are no payments). And we guarantee the amount that you or your estate eventually has to repay will never exceed the fair market value of your home at the time it is sold.*
There’s no reason your home should ever be a burden to you or if you're like many other 55+ Canadians, much of what you own fits into two categories—the equity in your home and the money you've saved. Chances are, the value of your home has grown over the years and makes up a good portion of your net worth. While having a home that has built value is a positive, you typically can’t spend that value unless you sell it. And that’s something many homeowners simply do not want to do.
That’s where CHIP comes in.
CHIP Reverse Mortgage is a reverse mortgage that allows seniors to convert equity in their homes into cash, without having to sell the home. It’s a special type of reverse mortgage, which means that it’s tied to Canada's Old Age Security (OAS) pension plan and is available to seniors who are at least 65 years old and have equity in their home.
You don't need any money down or credit check for this type of loan. You can choose how much you want each month for as long as you live in your home. The CHIP program pays off any existing mortgages or debts on your property and gives you some extra money as well!
When you take out a CHIP Reverse Mortgage, all the profits go into an account managed by an agent or broker who will arrange payments automatically each month until you move out permanently.
What makes this program work is that participants only take up to 55% of the value of their homes, which ensures you have access to the cash you want and also the security you need. The benefits of a reverse mortgage are clear: you can stay in your home for as long as you need, pass your home to family members if desired and choose to sell or keep it. You’ll never be asked to repay more than your home's value.
Marisa Nguyen can get you a mortgage that suits your needs in most situations regardless of your circumstances, at a competitive mortgage rate.
Experienced Mortgage Agent Marisa Nguyen offers Professional Mortgage Services with the best mortgage rates available to clients across Ancaster, Hamilton, Burlington, Niagara Falls, St. Catharines, Guelph, Milton, Oakville, Mississauga, Brantford, Grimsby, Kitchener, Niagara on the Lake, Toronto, Simcoe, and Port Dover, Ontario.