Oscarson Legal Blog

National legal news

This content shows Simple View

The Advantages Of Reverse Mortgage

chip reverse mortgage canadaSeeing that in this day and age money can become very scarce, more options to take money loans need to arise. This is especially true for people who are retired and have very little assets with considerable value other than their home. If you are such a person, a reverse mortgage for Canadian seniors could be the solution you’re looking for.

A reverse mortgage has your home paying you

Reverse mortgage, also known as a home equity conversion mortgage, is a transaction in which the owner of a home is provided with payments of money depending on the equity and value of the said home. The person, however, needs to be over the age of 62 to be eligible for this type of mortgage. As opposed to a regular mortgage, where the owner of the home repays the lender on a monthly basis, in the reverse mortgage the homeowner is not required to make any monthly payments. Quite the contrary, the lender makes monthly payments to the homeowner in the amount dependent on the value of the home. Aside from the financial worth of the home, other factors which the amount paid to the homeowner include the age of the person in question, in which case being older is more beneficial, the current interest rates and the sending limits imposed by the government. Both the mortgages, which can be worth up to 50% of the property’s value, and the interest rates can vary depending on the homeowner’s country of residence. However, in the case that the homeowner becomes deceased or the property, after a period of one year or more, is not being used as the primary place of residence, the loan has to be either repaid by those who inherit the residence it or the home can be sold as collateral.

Consider a reverse mortgage to solve your financial issues as a senior

Overall, a reverse mortgage from the Senior’s Lending Centre can be a great solution in the case that you are a retiree of the appropriate age. It can rapidly solve all of your current financial problems and you will not have to worry about any difficulties concerning money in the long term.

Leave a Reply

Your email address will not be published. Required fields are marked *