Reverse Mortgage
Mortgage Agent in Vaughan, Ontario
In Canada, a reverse mortgage is a type of loan that is secured against your principal residence. This financing solution gives you access to tax-free cash with no mandatory ongoing payments.
How does a reverse mortgage work?
You’ll continue to own and live in your home, and you’ll never be forced to move or sell your property, as long as:
- you live there for at least six months per year
- you keep your residence in good order
- you remain current with your property tax payments
- you adhere to the loan terms
You can use a reverse mortgage for things like:
- paying off debt
- covering everyday expenses
- making renovations
- supporting your family
- paying for in-home care
Interest is calculated on the outstanding balance of both principal and interest throughout the life of the loan. The outstanding balance will increase accordingly over time.
Your reverse mortgage must be repaid when the last remaining homeowner leaves the home, which generally happens through sale of property where the proceeds are used to pay back the loan.
As long as you meet your mortgage obligations, Equitable Bank guarantees that you will never owe more than the fair market value of your property where Fair Market Value is the amount that would be paid on the open market, on the applicable date, to buy the property, assuming there are no legal claims against the property.
