Would you prefer if your mortgage lender started giving you monthly payments? Don’t bother pinching yourself, it’s not a dream! If you’re wanting the tables to turn on your payments, you may be eligible for a reverse mortgage.
A reverse mortgage is a loan available to homeowners that converts part of the equity in their homes into cash. Many Albertans work hard their whole lives, only to be put on a fixed income when they retire. Sometimes this fixed income isn’t enough to cover basic living expenses and increasing healthcare costs. That’s where a reverse mortgage comes in. Instead of making monthly payments to a lender, as with a traditional mortgage, the lender makes payments to the borrower. As long as the borrower is living in the home, they are not required to pay back the loan.
There are a few factors that can determine whether or not you are eligible for a reverse mortgage. The first and foremost of these is age. You must be a homeowner who is 55 years of age or older to qualify. If you have a spouse, both of you must meet the minimum age requirement. Your lender will consider your home equity, appraised value, and the current interest rates in order to determine if you are eligible and for how much. The general rule is that the older you are and the more home equity you have, the larger your loan will be.
After obtaining special licensing in 2015, we are the only office in central Alberta to be a certified reverse mortgage specialist. We offer this through Home Equity Bank, which features the CHIP reverse mortgage, and who is the only provider of reverse mortgages in Canada.
If you are curious about how a reverse mortgage could benefit you, give Source Mortgage a call today!
Source was absolutely great to work with - went above and beyond to help us get everything done when buying our new home. Highly recommended!! Chad and Jenelle Richards Jan 09 2013
Chad and Jenelle Richards
Added January 23rd 2013
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