Is A Reverse Mortgage Right For You?
A reverse mortgage is a mortgage product for borrowers that own a house and are fifty-five years of age or older. This is because the mortgage allows borrowers to tap into the equity they’ve accumulated in their homes. It is an excellent source of finance during retirement as it helps borrowers meet different kinds of expenses without exhausting their savings.
To offer more information about reverse mortgages, the experts at Canadian Tailored Mortgage Solutions have explained it in this blog. Keep reading to see how it could be of benefit.
Like a traditional mortgage, a reverse mortgage allows homeowners to borrow money using their home as security. Also, like a conventional mortgage, the title to the property remains in the borrower’s name. However, unlike a traditional mortgage, borrowers don’t make monthly mortgage payments with a reverse mortgage. The mortgage is repaid when the borrower no longer lives in the home. Interest and fees are added to the mortgage balance each month, and the balance grows. With a reverse mortgage, homeowners are required to pay property taxes and homeowners insurance, use the property as their principal residence, and keep their house in good condition.
When using a reverse mortgage, retired individuals receive the benefit of increased monthly cash flow, which allows them to pay for health care, travel, etc. Reverse mortgage money is tax-free and can be used to pay off debts, renovate, make a home more accessible, handle unexpected expenses, and help children or grandchildren with down payments or education expenses.
Most people who take out reverse mortgages do not intend to ever repay them in full. But, generally speaking, reverse mortgages must be repaid when the borrower dies, moves, or sells their home. At that time, the borrowers (or their heirs) can repay the mortgage and keep the property. Borrowers and their next of kin can also sell the home and use the proceeds to repay the mortgage, with the sellers keeping any profits that remain after the mortgage is repaid.
Before applying for a reverse mortgage, borrowers must contact a mortgage broker to see how much they can qualify for. After getting some basic details, their mortgage professional will be able to provide them with an estimate. Once they have received their reverse mortgage quote to see if they qualify, they will be required to complete an application to begin the process. All the costs involved will be discussed at the time of application.
For more details about reverse mortgages, contact Canadian Tailored Mortgage Solutions by calling us at (905)509-8164 or (877) 834-9346. Our mortgage agents will help you determine if a reverse mortgage is right for you. Our experts are well versed in the mortgage industry with an accumulated thirty years of experience in dealing with mortgages. We will talk to you and discuss what suits your needs best based on your requirements, financial situation, and associated factors. If we come to the conclusion that a home equity loan isn’t the right product for you, then we can come up with other solutions, such as home equity lines of credit or refinancing your current mortgage.
Our fees vary on a case-to-case basis once an application has been completed and the file has been reviewed. Our job at Canadian Tailored Mortgage Solutions is to build and maintain stellar relationships with lending institutions across Canada. We have studied many of their products and services, understand their fine prints, and we have knowledge of loan options from the best lending programs available to cut and taper through to find the right fit for our mortgage borrowers. Our mortgage services are available to clients across Ontario. To learn all about the services we offer, please click here. To get in touch with us, please click here.