Reverse Mortgage Programs in Ontario
Access the funds that you need to live comfortably in retirement.
Are you interested in a reverse mortgage program in Ontario? If you’ve heard about reverse mortgage and you’d like to learn more, you’re in the right place.
At The Mortgage Centre KW, we are proud to partner with homeowners in the Kitchener-Waterloo region to provide trusted reverse mortgage programs. Our programs help you live the retirement that you’ve always imagined — even if there have been bumps along the way.
We offer CHIP reverse mortgage programs and other alternatives to reverse mortgages, such as the Manulife One mortgage solution. Learn more about the basics of reverse mortgages you need to know and find out which program will be the best fit for your lifestyle.
What is a Reverse Mortgage?
A reverse mortgage is a type of loan that allows you to access equity in your home and convert it into tax-free funds. Reverse mortgages are designed to be used by Canadians who are 55+ years of age and are looking to live more comfortably in their retirement. However, a reverse mortgage can be beneficial at other stages of life, depending on your specific circumstances.
Unlike a standard mortgage, a reverse mortgage does not require any monthly payments. You do not have to pay back any amount of the loan until you and your spouse move out of your home. At that time, the sale of your home can be used to pay off the remainder of the loan.
How Does a Reverse Mortgage Work?
A reverse mortgage allows you to borrow up to a certain percentage of your home’s value in tax-free funds. These funds can be used in any way that you see fit. They can help cover the costs of daily living, pay for travel or vacations, fund a renovation project, and much more.
In order to be eligible for a reverse mortgage, you must be a Canadian homeowner who is over 55 years of age. If you and your spouse are joint owners of a home, then you must both be listed on the reverse mortgage application. You cannot apply for a reverse mortgage on a home that is not your primary residence.
There are a couple of things to note when applying for a reverse mortgage. To apply, your home equity must be equal to or greater than the amount owed on your mortgage. If you do have an existing mortgage, you must use the reverse mortgage to pay off the remainder of the balance.
How Much Money Will I Get From a Reverse Mortgage?
There are a number of factors that will be assessed to determine how much money you will be able to access with a reverse mortgage, including:
- You and your spouse’s age
- Your home’s location
- Your home equity and mortgage balance
- The size of your home
- The condition of your home
- The appraised value of your home
- And more
What If I’m Under 55 Years of Age?
If you’re under 55 years of age and you’re looking to access your home equity, there are a number of other options available.
At Mortgage Centre KW, we offer a wide range of programs for clients to access the money that they need to live comfortably. For both seniors and individuals under 55 years of age, Manulife One offers a great alternative to a conventional reverse mortgage. This program has lower interest rates than reverse mortgages and has no age limit on eligibility.
Check out the Manulife One program below.
Our Reverse Mortgage Programs
The CHIP Reverse Mortgage program is the standard reverse mortgage program for homeowners who are over 55 years of age and looking for a one-time lump sum. This amount may be needed to pay off existing debt, finance a major expense (such as a second home or a car), manage urgent healthcare needs, or help out family members.
It’s important to note that the loan amount for this program increases with age — the older you are, the more you are eligible to borrow.
The CHIP Max Reverse Mortgage is a special reverse mortgage program that is specifically designed for clients aged 55 to 75. It provides you with a loan amount up to 30% higher than the typical CHIP Reverse Mortgage and is ideal for those who would otherwise be exploring high interest alternative lenders and second mortgages.
As you are borrowing a larger sum of money than a typical reverse mortgage, this program comes with higher interest rates. It requires no monthly payments, but it is only offered in urban centres throughout Ontario and select other provinces.
Income Advantage is a reverse mortgage program that is designed for individuals who don’t need a large lump sum and are simply looking to supplement their monthly retirement income.
The minimum initial advance is $20,000, which is disbursed in minimum $1,000 monthly or quarterly planned advances. Program amounts can be customized to suit your specific needs and lifestyle.
Your Reverse Mortgage Alternative | Manulife One
Manulife One is a mortgage solution that combines all of your deposits and borrowing into a single account. It is designed to help customers simplify everyday banking, save interest, and improve financial flexibility in retirement. If you’re looking to reduce debts, Manulife One is a great way to become debt-free years sooner.
In order to get the most benefit, Manulife One should be used as your main chequing account, although it can also be used as a secured line of credit. When you apply for Manulife One, our team will help you qualify on your and your spouse’s current combined income, so you can continue to access your current borrowing limit — even after your income is reduced when you enter retirement.
Manulife One also offers improved protection against cybercrime and title fraud. Most criminals will target homes that are mortgage-free and, with Manulife One registered, it makes it more difficult for them to access equity in your home.
This type of account does require a low monthly fee, which can be waived if you select a Manulife VISA card that is associated with and conveniently paid through your main Manulife One account. Check out the Manulife One reverse mortgage calculator below.
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