Found 3 blog entries tagged as Reverse mortgage.

Reverse mortgages have become increasingly popular in recent years, with a reported 30% surge in demand in 2022. Originations exceeded $1 billion for the second consecutive year, contributing to a nationwide outstanding reverse mortgage debt estimated at around $5 billion. In light of high inflation, interest rates, and insufficient Canada Pension Plan (CPP) payments, more Canadians are turning to reverse mortgages as a potential solution to supplement their retirement income. By viewing their homes as a reliable source of funding, they can avoid the need to sell their property.

What Is a Reverse Mortgage?

A reverse mortgage is a type of loan that enables homeowners to access funds from their home equity without the need to sell their property.…

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Are you a homeowner who is looking for a way to supplement your retirement income? If so, a reverse mortgage might be just what you need. Let's look at what a reverse mortgage is, how it works, and discuss Canadian mortgage regulations that may apply.

What is a Reverse Mortgage?

A reverse mortgage is a type of loan that allows homeowners to borrow money against the equity they have built up in their homes. Unlike a traditional mortgage where the borrower makes monthly payments to the lender, a reverse mortgage allows the homeowner to receive payments from the lender. These payments can be made as a lump sum, a monthly income, or a line of credit.

How Does a Reverse Mortgage Work?

To qualify for a reverse mortgage in Canada, you must be at…

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Typically, when tapping into your home’s equity, one uses a home equity line of credit (HELOC) or refinances their mortgage. What if we told you this was not the only way to free up home equity for other purposes? While a traditional mortgage is a loan secured by a home or property, the borrower must pay back the loan each month with interest throughout the loan lifetime. A reverse mortgage is the opposite. So, what is a reverse mortgage anyway?

A reverse mortgage is exclusive to Canadians over the age of 55. In a reverse mortgage situation, the homeowner can borrow as much as 55 per cent of the current home’s value. In other words, they are borrowing against the equity in the home. The borrower receives the money and does not have to make any…

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