A reverse mortgage is a loan that is designed for homeowners 55 years of age and older. A reverse mortgage is secured by the equity in the home, which is the difference between the value of your home and the unpaid balance of any current mortgage. This is unique, will allows homeowners to obtain cash without having to sell their house.

Reverse Mortgage is a means for homeowners to access a portion of the stored value of their house to use today, while still retaining ownership of their house property. In effect, converting the equity to cash, which can be received as a lump sum, regular payments, or a combination of the two. The agreement is a “life-term” loan, which is a loan for either the lifetime(s) of the owners or the life of the ownership of the house.

Reverse mortgages are marketed very effectively. The portrayal seems undeniably convincing.

“Stay in your house – Remain independent” and keep maintaing your financial Freedom. Enjoy your money now- you deserve it. Renovate your house. Give the money to your family – kids. Your house will continue to appreciate in value and offset interest costs and any loss of equity.

Atteractions:

  • No need to pay regular payments on loan (Principal and or Interest).
  • No need to sell the house.
  • The money you borrow is a tax-free source of income.
  • The borrowing money does not effect the Old-Age Security (OAS) or Guaranteed income supplement (GIS) benefit.
  • You remain the owner of your house property.
  • You can decide how you want to receive the money (a) a lump- sum payment (b) a loan to set up planned advances that provide you with a regular income (c) combination of both.