Canadian Mortgage Rates
| Term | Rate |
| Prime Rate (P) | 3.00% |
| Line of Credit (LOC) | 3.50% |
| 5 Year Closed Variable | P -0.15% |
| 5 Year Open Variable | P +0.75% |
| 6 Month Closed | 2.89% |
| 1 Year Closed | 2.79% |
| 2 Year Closed | 2.89% |
| 3 Year Closed | 2.89% |
| 4 Year Closed | 2.99% |
| 5 Year Closed | 3.19% |
| 7 Year Closed | 3.89% |
| 10 Year Closed | 3.89% |
YOUR CANADIAN MORTGAGE BROKER
February 10, 2010
Canadian Reverse Mortgages
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 The withdrawn equity can be used for whatever you desire: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.
Benefits:
- 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.
Mortgage Process
In Other Languages
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Breaking News
More News
December 2, 2011; MCAP has announced an agreement to acquire the residential mortgage operations and certain related assets of ResMor Trust Company (ResMor). The transaction is expected to be completed in the first quarter of 2012 and is subject to regulatory approval and other customary closing conditions. [ Read more... ]
October 25, 2011; The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent. [ Read more... ]
October 19, 2011; Since 2008 the government of Canada has made mandatory changes to reduce the maximum amortization period from 40 years down to 35 and now down to 30 years for any insured mortgages.
Insured mortgages (also known as high ratio mortgages) are mortgages that require less than 20% of the value of the home for the down payment or for refinancing, less than 20% in equity. The government backs these mortgages for the protection of the lenders. Currently with these mortgages the maximum amortization period is 30 years.
The media has covered how the amortization has been reduced to 30 years in depth, but they have failed to mention that this is not the case with other mortgage options. Mortgages that are often referred to as conventional or uninsured mortgages, which entail a 20% or greater down payment or equity, still offer amortization periods of up to 40 years. [ Read more... ]
Canadian Reverse Mortgages
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.
Benefits:
- 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.
Mortgage Process
In Other Languages
Breaking News
More News
Insured mortgages (also known as high ratio mortgages) are mortgages that require less than 20% of the value of the home for the down payment or for refinancing, less than 20% in equity. The government backs these mortgages for the protection of the lenders. Currently with these mortgages the maximum amortization period is 30 years.
The media has covered how the amortization has been reduced to 30 years in depth, but they have failed to mention that this is not the case with other mortgage options. Mortgages that are often referred to as conventional or uninsured mortgages, which entail a 20% or greater down payment or equity, still offer amortization periods of up to 40 years. [ Read more... ]