Reverse Mortgage Mississauga, ON
What is a Reverse Mortgage?
A reverse mortgage is a loan secured against the value of your home. It is designed exclusively for homeowners aged 55 years and older. It enables you to convert up to 55% of your home's value into tax-free cash. The funds from a reverse mortgage can be used for whatever you desire; to cover monthly expenses, renovate your home, pay off debt or travel - the choice is yours! With a reverse mortgage, you maintain ownership of your home and there are no monthly mortgage payments required. Repayment of the loan is only required once you chose to move or sell. We guarantee that the amount you eventually repay will never exceed the fair market value of your home. And if your home goes up in value, the appreciation is all yours. You are simply required to maintain your property and pay the taxes and insurance.
Reverse Mortgage Eligibility & Qualifications
To be considered eligible for a Reverse Mortgage in Canada, you must be:
- A Canadian homeowner
- Age 55 or older (if you have a spouse, both of you must be at least 55 years old to be eligible)
To qualify for a Reverse Mortgage in Canada, the following factors are assessed:
- You and your spouse's age
- Location of your home
- Type of home (e.g. detached, condo, townhouse etc.)
- The appraised value of your home
- The condition of your home
- Your home equity
Reverse Mortgage FAQ
What if I have an existing mortgage?
You can use the CHIP Reverse Mortgage to pay off your existing mortgage and free up cash flow for the things that matter to you.
What makes the CHIP Reverse Mortgage different from a Home Equity Line of Credit?
HELOCs are a good short-term borrowing option for people who can pay the interest and loan in the near future. However, HELOCs are callable loans and there exists a significant risk of non-renewal or cancellation.
Will I ever owe more than my house is worth?
You keep all the equity remaining in your home. In our many years of experience, over 99% of homeowners have money left over when their loan is repaid. The equity remaining depends on the amount borrowed, the value of the home, and the amount of time that’s passed since the reverse mortgage was taken out.
What fees am I responsible for?
There are one-time fees to arrange a reverse mortgage. Appraisal fees, a fee for independent legal advice, as well as our fee for administration, title insurance, and registration. Many of these fees are common with a conventional mortgage. With the exception of the appraisal fee, all fees are paid for with the funding dollars.
Should I consider this a loan of last resort?
No. Many financial professionals recommend a reverse mortgage to homeowners 55 and over who prefer to stay in their own home, want to eliminate their monthly mortgage payments, and supplement their monthly income with tax-free funds