Reverse Mortgage in Ontario
With a reverse mortgage Ontario, you can access the equity in your home and turn it into tax-free funds. Canadians who are 55 years of age or older and want to live more comfortably in retirement can use reverse mortgages. However, depending on your unique situation, a reverse mortgage may be advantageous at other periods of life.
A Reverse Mortgage is not like a regular mortgage in that there are no monthly payments. The loan is not due in full until you and your spouse vacate your residence. The remainder of the loan can then be settled using the profits from the sale of your home.
How does a reverse mortgage work?
With a reverse mortgage Ontario, you are able to take out a tax-free loan for a maximum amount of your home’s value. You are free to make any use of these funds that you see fit. They can assist with sustaining everyday expenses, fund trips or vacations, finance home improvements, and much more.
You must be a Canadian homeowner who is older than 55 to qualify for a reverse mortgage. Both of you must be named on the reverse mortgage application if you and your spouse are the legal owners of the property. A home that is not your primary residence cannot be the subject of a reverse mortgage application.
There are a few things to keep in mind when applying for a reverse mortgage. Your home equity must be more than or equal to the balance of your mortgage in order to qualify. You must use the reverse mortgage to pay off the remaining sum if you already have a mortgage.