Let’s face it: reverse mortgages are one of the most confusing mortgage products out there.
That’s why I wrote this free guide.
Don’t take out a reverse mortgage before you read this guide and discover all of your options.
Discover important information about how a it works, alternatives & how to get the best help.
My name is James Smythe and I am a licensed, independent and impartial Mortgage Broker – the owner of Central Mortgage and Finance Corp.
With over 20 years experience in the industry, I’ve been featured in the “I Love Mortgage Brokering” podcast, as well as industry articles and I’ve been a recipient of the Canadian Mortgage Profession Top 50 Brokers.
I’m proud to be highly regarded in the industry and to be able to serve my clients above and beyond.
When it comes to Reverse Mortgage and mortgage advice for retirees, I’m here to make sure you get all of the information you need to make an informed decision and get the financial help you need.
They are a specific mortgage product only made available to folks 55 years and older.
The best place to learn more about how reverse mortgages work is by reading my free guide.
This guide outlines the key facts you need to know to make an informed decision. Download the free guide by clicking the button below.
If I had a dollar for ever piece of false information I’d read about reverse mortgages, I’d be a very rich man.
After 20 years in the industry, I decided it was time to write this guide to help people like you understand the REAL facts about reverse mortgages.
If you are over 55, and if your partner is on title and is also over 55, then you qualify for it.
The amount you qualify for depends on a few factors:
Your age and the age of your spouse
The property type of your home (house vs townhouse vs condo)
Where your home is located
You can find out more in the free guide.
It is easy to confuse the reverse mortgage in the USA with that in Canada but this is a huge mistake – as the 2 products are very, very different.
There are a lot of bad stories about reverse mortgages in the USA because it’s a lot more like the ‘wild west’ of lending than in Canada.
It is very important to note that the reverse mortgage in Canada is completely different to that in the USA – much less risky and much safer.
Find out more in the free guide!
These two reverse mortgage products could not be any more different. First of all, what is required to qualify is very different. The closing costs also tend to be much higher in the US.
Generally, banking in Canada is more conservative (i.e. less prone to take risk) than banking in the US. This means you can be a lot more confident that the banks here won’t put you into a financially risky situation.
Reverse mortgages in the US have a bad reputation, and rightly so as result of poor lending practices and qualification rules that resulted in many seniors losing their homes. This is not the case in Canada. In fact, 99% of Canadian homes have equity remaining in the home after the reverse mortgage is discharged.
You can use your home equity to draw a home equity line of credit to achieve the same end as a reverse mortgage.
The downside of a home equity line of credit is that you will have monthly payments at a given interest rate that you need to make on the amount that you withdraw.
This is just like a regular mortgage in that you are making monthly payments on a mortgage loan.
The advantage of a reverse mortgage is that the loan plus interest only becomes due when the home is sold or if the borrower dies. It is a long term way to draw money from your home equity without having to worry about monthly payments or mortgage debt in the meanwhile.