• Buying a Home?

    MyMortgage.ca offers a variety of mortgage options for home buyers. Regardless of your circumstances, we can usually find a mortgage to suit your needs.
  • Need to Refinance? Let us help

    Don't let circcumstances prevent you from reaching your goals. MyMortgage.ca offers a number of mortgage products designed to suit your refinancing needs.
  • Save Money on Mortgage Renewals

    Mortgage up for renewal? This is the ideal time to re-assess and re-examine your financial situation. Call us today.

Reverse Mortgages for Seniors - CHIP

A ‘reverse mortgage’ is a new way of borrowing money for people 60 or older and own a home or condo to qualify for a reverse mortgage in Canada. The flexibility of never having to make monthly payments is why reverse mortgages are such an attractive option for thousands of Canadian homeowners.

Some people love them while others say they’re a dangerous last resort.

What is a reverse mortgage?

A Canadian reverse mortgage allows people who are house-rich and cash-poor – many of whom could be seniors on pensions, who have their home paid off and are over 60 – to receive the option of receiving all the money you're eligible for in one lump sum advance, or you can take some now and more later, or you can receive planned advances over a set period of time. You can even combine a lump sum advance at the beginning with ongoing advances over time.

For most of these seniors, their home is their largest asset, yet they can’t borrow against it because they cannot afford a monthly payment against the balance.

A reverse mortgage works differently. You can make monthly interest payments if you want to, but most people choose to pay back the mortgage when they sell their home.

Here's How it Works

Once you have the cash in your hand, you’re free to do what you please. The withdrawn equity can be used for whatever you desire:

  • Home improvements
  • Pay off a current mortgage - No More Payments!!!
  • Supplement your income
  • Medical expenses
  • Pay off debt
  • Buy a new car
  • Travel
  • College tuition or gifts to family

As long as you’re alive and haven’t sold your house, you don’t make any payments on the money you borrow.

But once you sell the house or die, the principal and accumulated interest must be paid back from the profits on the sale of the house.

The Plus Side

Seniors have every right to enjoy their twilight years in their family home. Often, they’re still living in the house in which they raised their family, in a town or city neighbourhood they helped build through community-mindedness and volunteerism. Yet, if they can’t afford to pay their bills, despite being mortgage-free, then a reverse mortgage might be perfect for them.

Perhaps their pension covers their expenses, but doesn’t leave room for the extras. The cash in hand from a reverse mortgage can give them the financial flexibility they require to fulfill their retirement dreams.

  • Your home is still your home.
  • You choose how you receive your equity money.
  • You can save on taxes.
  • Your government benefits are not affected.
  • Your remaining equity is yours.
  • You can have peace of mind.

For detailed information please visit http://www.chip.ca or call MyMortgage.ca to enquire.


  Return to Mortgage Solutions