Reverse Mortgage

If you're like most people, you purchased your home with a regular mortgage. This is known as a forward mortgage.

With a regular (forward) mortgage, you borrow money from a lender and make monthly payments to pay down the balance (principal and interest). Your debt decreases as you continue to pay off your mortgage and your home equity increases. When the mortgage is paid in full you have full equity and own the home outright.

A reverse mortgage works differently. Instead of making your monthly payments to a lender, the lender makes payments to you based on a percentage of the value in your home. Reverse mortgages allow you to access the home equity you have built up in your home right now. Payment of the loan is deferred until you pass away, sell, or move out of the home.

As the borrower, you have the option to choose whether the cash is paid as a single lump sum, a regular monthly cash advance, a line of credit, or a combination of these methods. Throughout the lifespan of the reverse mortgage you keep title to your home, which acts as security for the loan. Interest is only charged on the funds you borrow. You can also choose between both fixed and variable interest rates.

Turn your Home Equity into Cash

If you're a Canadian over the age of 55 much of what you own probably fits into two categories: the equity in your home and the money you've saved. More than likely, the value of your home has grown over the years and makes up a good portion of your net worth.

While having a home that has built value is a positive, you typically can't spend that value unless you sell it. And that's something many homeowners, like you, simply do not want to do.

Let Us Help You Access Your Home Equity

A Reverse Mortgage through lets you change the home equity and savings balance by turning some of your equity into cash. Unlike many mortgage-based financial products, you're not obligated to make any payments until you choose to move or sell. What makes this program work is that participants only take up to 55% of the value of their homes. This ensures you have access to the cash you want and also the security you need.