Mortgage solution
Reverse mortgage
Advantages, limits and costs of a reverse mortgage, laid out before you commit to anything.
When a reverse mortgage is worth a look
It lets an older homeowner tap the equity without making monthly payments. It fixes a cash-flow problem, but it does that by spending equity that would otherwise go to the estate. That’s the trade-off to weigh.
What the lender checks
Age, value of the home, where it is, and any mortgage still owing. The balance you already owe usually gets paid out of the proceeds first, and only what’s left is released to you.
Read this before you sign
Nobody pays the balance down, so interest piles onto interest and the debt grows every year. Ask for the projected balance at five, ten and fifteen years. That one table answers most of the questions.
Exit, and the family
The loan comes due when the home is sold, when the owner leaves for good, or at death. It changes what the heirs get, so talk it over with your family and a notary. Don’t decide alone.
Documents to gather
What the lender will ask for.
- Age of the owners
- Estimated value of the home
- Mortgage balance today
- Taxes and insurance
- Cash you actually need
- Plan for a sale or the estate
Frequently asked
Does a reverse mortgage require a monthly payment?
Usually not. But interest keeps accumulating and eats into the equity you have left. You still owe the taxes and insurance, and the house still needs maintenance.
Is it always the best way to access cash?
No. Set it against refinancing, a line of credit, selling, or cutting your debt. What works depends on your age, your equity and what you actually need the money for.
Current rates
Today’s rates, with the fine print.
These rates are indicative. Yours depends on your file, the type of mortgage (insured or not) and the lender. And look at the penalty too, it matters as much as the number.
Have your file reviewed before you commit.
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Pick the situation closest to yours.
Contact
Tell Mathieu about your project
Buying, renewing, refinancing, or something a bit out of the ordinary: tell us where you’re at, even if it’s still fuzzy. Mathieu gets back to you with next steps and the documents to pull together.
- Your request goes directly to Mathieu
- Across Quebec, in French and English
- No fee on most residential files