Reverse Mortgage Loan in Mississauga
Reverse mortgages are a popular option among Canadian homeowners who are 55 or older. These mortgages function by providing safe solutions for home buyers or owners to get access to their equity and transform it into tax-free cash. That way, you don’t have to have monthly mortgage payments. Reverse mortgages differ from more traditional ones because you do not need to make any payments, whether interest or principal until you leave your home.
What are reverse mortgages?
Reverse mortgages are secured against your home’s value and allow you to convert 55% of it into tax-free funds. The money acquired from a reverse mortgage can be used for a variety of functions, such as paying monthly expenses, home repairs or renovations, travel, or whatever will benefit you.
With this type of loan, you still get to own your home, but without the monthly mortgage cost – you only need to pay it if you choose to move or sell your home. However, at sMp Mortgages, we know that the repayment amount will not exceed your home’s fair market value. Even if your home increases in value, the appreciation still belongs to you. All that is needed on your end is performing maintenance on the property and covering taxes and insurance.
Am I eligible for a reverse mortgage?
In order to be eligible for a reverse mortgage in Canada, the requirements are that you need to be a homeowner and aged 55 or older. If you are married, your spouse also needs to be at least 55 years of age or older. Lenders take into account your home’s location, the type of home, your home’s appraised value and condition, as well as your home’s equity.
How does your home’s equity turn into cash?
If you have owned your home for a long time, there’s a high chance that it has gone up in value over the years. While having a higher home value is a good thing; you generally aren’t able to access these funds for cash value until your home is sold. However, with a reverse mortgage, you can turn this equity into tax-free cash, up to 55% of the home’s appraised value. Many people enjoy this option because it gives them peace of mind that they can have some money at any time. Plus, it’s especially appealing since you can still own your home without paying the monthly mortgage fees until you need to sell or move.
How do I get control of my home with a reverse mortgage?
Since buying your home was likely one of the most significant investments you have ever made, you’ll want to maintain that investment. With a reverse mortgage, you get to keep control of your home and not be in the position where you need to sell or move. At sMpMortgages, we ensure that the funds you need to pay back will not become burdensome to you or your family, as it will never surpass the market value of your home. That means when your home goes up in value, you’ll receive the appreciation. Many people want reassurance that when they retire, they won’t have to give up their valued home.
At sMp Mortgages, we know how essential a reverse mortgage is to many of our customers. That’s why we tailor our reverse mortgages to your unique needs. The options are all up to you — whether you want to access money over a period of time, or receive it all at once, we work with you to make a choice. If at any point, you decide to pay back the principal and interest in full or want to pay the interest monthly or annually, you can do this as well.
Contact sMp Mortgages
As one of Canada’s most trusted mortgage companies, sMp Mortgages ensures that you are happy with your decision to pursue a reverse mortgage and that the terms work for your circumstances. For the past decade, we have assisted homeowners who are aged 55 or older by providing them with top quality reverse mortgages so that they can enjoy their retirement in their original home.
If you meet the qualifications for a reverse mortgage and think t hat it would be an ideal option for you, feel free to get in touch with our team. We will happily answer any questions you might have. We can also provide you with all the necessary details so that you can make an informed decision. Give us a call today at 1-844-MY-PLAN or fill out our contact form, and we will get back to you as soon as possible!