Reverse Mortgage

When I had a choice on where to raise my family, I chose St. Albert because it had good neighborhoods, schools and was a great community. I bet you chose your home for the same reason. The goal was always to pay it off and be debt free. You have worked hard and managed your home over the years and treating it like the valuable asset it is – So why stop now? Reverse Mortgages are an opportunity to leverage your home, just like you did many years ago when you placed your first mortgage, and allow you to continue to be in control of your assets and finances. Time to reverse the old mindset that all debt is “bad debt”. It simply is not true and there are many reasons why a reverse mortgage can be a good financial decision.

Satisfied Couple New Homeowners Relaxing on Cozy Couch Indoors

Why a Reverse Mortgage Might be a Good Fit

  • Desire to “Age in Place"

    For many people, staying in their home and neighborhood, where it is familiar, is a big part of their healthy lifestyle. Physically, mentally and financially it just might make sense. Taking equity out may provide opportunity to renovate, upgrade infrastructure and set up the necessary supports to stay at home and thrive.

  • Living Inheritance to Kids or grandkids

    For years we have lived with the notion of leaving an inheritance to the people we love and yet why can’t you be here to enjoy it with them. So often I see families taking “once in life-time trips”, gifting a downpayment for a home or paying for grandchild’s education. For so many it becomes more meaningful to celebrate with the family.

  • Pay off low balance existing mortgage or HELOC

    Monthly payments on a fixed income may not be the best use of your financial resources. Cashing in investments, taking the tax hit and impacting additional benefits may also not be good financial planning. Replacing the existing mortgage or HELOC with no monthly payments could be the financial planning that works at this stage of life. Reverse Mortgages are Tax-Free and no impact on your OAS/GIC benefits.

  • Purchase a vacation property

    Who says you need to stay in St. Albert for the winter? Tired of taking money out of your investments to pay for monthly rentals in a warm weather climate? Leverage your existing home and spend quality time in the sun during our winter months. No tax implications to the Reverse Mortgage and you leave your investments in place for daily living.

  • Increase cash flow and pay off debt

    Just like everyone else, life moves fast and cash flow reduces. The Goal is to make the investments last as long as possible and keep your seniors benefits intact. The reality- many Canadians are house-rich but looking at a retirement that may be lifestyle-poor. A Reverse Mortgage can assist in paying off debt and increasing monthly cash flow, is tax-free and will not impact your OAS or GIS benefits.

What is a Reverse Mortgage?

  • Summary
  • Who qualifies:
    • Mortgage loan unlike a traditional mortgage as it does not require monthly payments
    • No-Negative Equity Guarantee: Borrower and their estate are protected from owing more than the current market value of the home when the mortgage comes due

    Limits to Loan Amount: To ensure the negative equity guarantee-a maximum of 55% of the market value of the home at the time of applying for the mortgage can be borrowed.

    • Borrowers must be 55+ years of age
    • Everyone on the application and Home Title must be 55+ years old.
    • The home must be the clients’ primary residence.
    • The homes value must be minimum $200,000

Our Process

Steps to Securing a Reverse Mortgage

Step #1: Initial meeting to discuss

  • What is a Reverse Mortgage
  • Your situation and how this may or may not be a good fit
  • Discuss Fee’s associated with placing a Reverse Mortgage
  • Answer any of your or your families questions

Step #2: Home Appraisal

  • First Fee paid by client and is generally $300-$500
  • Appraisals determines current estimated value of the property
  • This is used along with your age and location to determine how much money the lender can lend you.

Step #3: Reverse Mortgage Qualified amount

  • Lender will determine a Reverse Mortgage Qualified amount based on the above information

Step #4: Confirm the Loan amount and interest rate with you

  • Interest Rates are typically slightly higher than a conventional mortgage but less than an unsecured line of credit.
  • Type of Reverse Mortgage product confirmed
  • Second Fee determined: Mortgage Fee (Fee for arranging the mortgage) typically $1800 – $2500

Step #5: You select a lawyer for independent legal counsel

  • A Reverse Mortgage requires all borrowers to obtain independent legal advice, similar to a traditional mortgage.
  • Third and final fee: Independent Legal counsel – this can range between $300-$700 depending on the lawyer of choice.

Step #6: Legal Process

  • Mortgage documents are drawn up and signed

Step #7:Funds become available

Contact Us

Think of me as your personal guide through mortgage applications. Whether you’re starting from scratch or have faced rejections in the past, rest assured that I’m here to make the journey easier for you. Reach out today, and let’s kickstart your path to a successful mortgage negotiation!