DON’T CHOOSE, COMPARE!! Before you make any decisions, we at Genesis Associates will help you decide on the best Reverse Mortgage Lender based on your criteria. As brokers it is our function to educate you in making an informed decision.
Simply fill out the info page provided, and we will contact you personally to discuss your needs and personally answer any/all the questions you will have.
Our service is FREE, so let us help you achieve your financial goals. IF you need a brief education on what a Reverse Mortgage is then read on.
As a brief disclosure there are primarily 2 bank lending institutions in Ontario offering the Reverse Mortgage product, HomeEquity Bank and Equitable Bank Inc. There is also Bloom Finance Company Ltd. Each of the 3 institutions have a varying portfolio of products associated with their reverse mortgages, so why not compare FIRST. At Genesis Associates Ltd. we are the mortgage brokers who will provide you with ALL the necessary info from EACH reverse mortgage lender in order that you may make a fully informed and educated decision.
AND, our service to you is FREE!! There are NO hidden brokerage costs or fees.
So, please read on and we hope you call us.
A reverse mortgage is a loan that allows a you to get money from the equity in your home without having to sell. This is sometimes called “equity release”. You may be able to borrow up to a certain percentage of the current value of your home. The maximum amount you will be able to borrow will depend on your age, your home’s appraised value and your lender.
To be eligible for a reverse mortgage, the borrower(s) must be:
- a homeowner (reside in a detached, semi-detached, condo or townhouse in Ontario)
- principal residence (must reside in property for at least six months each calendar year)
- at least 55 years of age (this applies to each borrower registered on the property)
If you have a spouse or partner and you are both on the title for your house, both of you must be listed on the reverse mortgage application. Both of you must be at least 55 years old to be eligible for a reverse mortgage. Further to this note, any additional people registered on title must be on the application and must be over 55 years of age.
Any existing mortgage financing, line of credit, lien or debt currently registered on your property must be paid off when you get a reverse mortgage. A reverse mortgage is NOT to be considered as additional financing to an existing mortgage.
When we apply for a reverse mortgage, the lender of choice will consider:
- your age, and the age of your spouse/partner if they are registered on the title of your house
- where you live
- your home’s condition, type and appraised value
In general, the older you are and the more home equity you have when you apply for a reverse mortgage, the more money you could get. Current market trends will also impact how much money you could get.
It is our recommendation as brokers representing your best interest that you obtain Independent Legal Advice (ILA) before you get a reverse mortgage. ILA may be defined briefly as “retaining an arms length lawyer, who has no conflicting interest with respect to the client’s transaction, and the retained lawyer has explained the legal aspects of the transaction to you as the client, so that you understand the mortgage transaction given”.
Accessing your money with a reverse mortgage
You may be able to get the money from your loan by:
- taking the money as a one-time lump sum
- taking some of the money up front and taking the rest over time
You must first pay off and close any outstanding loans or lines of credit that are secured by your home, such as a mortgage or home equity line of credit. You could use the money you get from a reverse mortgage to do this.
You can use the remainder of the loan for anything you wish, such as to:
- pay for home repairs or improvements
- help with regular bills
- cover healthcare expenses
- repay debts
You will NOT be able to take out another loan secured by your home, such as a home equity line of credit, if you have a reverse mortgage.