Reverse Mortgage in Toronto
If you are looking for a way to use your assets to meet financial responsibilities, investing in a reverse mortgage might be just the solution you need.
The team of experts at eMortgage Solutions has been providing outstanding mortgage services for years. We have access to lenders throughout the Toronto area, and we can help you find an organization that offers the very best rates.
To find out how a reverse mortgage could help you get on top of your finances, set up a consultation with our team today, (416) 258-0156.
What Is a Reverse Mortgage?
A reverse mortgage is a loan that allows qualified borrowers to access a percentage of money from their home equity without having to sell their property. This credit, otherwise known as an equity release, can be used to pay for responsibilities such as outstanding loans, home improvements, and medical expenses. Put simply, a reverse mortgage allows you to use the value of your home before you sell it.
How Does a Reverse Mortgage Work?
To access a reverse mortgage, you must first pay off your existing mortgage. Many people choose to pay off their existing mortgage with the reverse mortgage itself. The remaining money can then be used to pay for other responsibilities. The reverse mortgage loan will be paid off when the homeowner decides to sell the house, or when the last borrower dies. Until then, no payments are required. The longer you go without paying off your reverse mortgage, however, the higher the interest rate.
Who Qualifies for a Reverse Mortgage?
Not just anyone can invest in a reverse mortgage. To take out a reverse mortgage loan:
- You must be 55 years of age or older. If two people own the home, both owners must be over 55
- The property must be your primary residence, meaning that you live there for more than six months throughout the year
- Your home must be of a certain value (typically the older you are, the higher the value of your home, the higher a percentage of the equity you can use)
- You must be able to pay off your existing mortgage
What Are the Pros and Cons of a Reverse Mortgage?
- You do not have to make payments on your loan until it’s due
- A reverse mortgage is an opportunity to use your assets without selling them
- You still own your house and can continue to enjoy it
- The longer you go without repaying your loan, the higher the interest rate
- Having a reverse loan for an extended time can decrease your home’s equity
- Reverse mortgage interest rates are higher than that of a primary mortgage
Find the Best Reverse Mortgage Rates in Toronto
At eMortgage Solutions, we have access to unique lenders throughout the Toronto area. We will first get an understanding of your needs to better help you find an organization that offers competitive rates on reverse mortgage loans.
To find out more about the benefits of investing in a reverse mortgage, set up a consultation today!