Reverse Mortgages

Understanding Reverse Mortgages

Reverse mortgages are a unique financial tool designed to empower seniors. They offer access to home equity without the burden of monthly payments, making them an attractive option for supplementing retirement income or covering unexpected expenses, such as home renovations or medical bills.

If you’re a Mississauga homeowner aged 55 or older, a reverse mortgage might be a viable solution. Here are some key advantages:

Repaying Your Reverse Mortgage

Unlike traditional mortgages, reverse mortgages are repaid differently. There are no monthly payments over a fixed period. Instead, repayment occurs when the property is sold, the last surviving borrower no longer resides in the home, or upon their passing. Typically, the loan is settled from the proceeds of the property sale.

Understanding Reverse Mortgage Costs

The costs associated with reverse mortgages can vary based on the loan type, your home’s value, and other factors. Generally, reverse mortgages have higher interest rates than traditional mortgages. Additional fees may include origination fees, home appraisal expenses, setup fees, legal fees for closing, and legal advice. It’s crucial to compare these costs to determine if a reverse mortgage aligns with your financial goals.