A reverse mortgage is a specialized loan designed for homeowners in Victoria and cities throughout Canada aged 55 or older. It allows you to convert a portion of your home equity into tax-free cash, which you can use however you wish. Unlike a traditional mortgage, you are not required to make any regular monthly payments for as long as you live in your home. The loan, plus accrued interest, is typically repaid only when you sell your home, move out, or if the last remaining borrower passes away. It’s a strategic financial tool that can provide greater comfort and flexibility during your retirement years in Victoria, without forcing you to sell the home you cherish.
What are the common uses for funds from a reverse mortgage?
Funds can be used for anything you wish: supplementing retirement income, home renovations or accessibility modifications, covering healthcare expenses, paying off debts, travel, or helping family.
What if my Victoria home's value drops below the loan amount?
Reputable Canadian reverse mortgage products, like the CHIP Reverse Mortgage, guarantee that you (or your estate) will not owe more than the fair market value of your home at the time it is sold, provided property taxes and insurance are kept up to date and the home is well-maintained.
When does the loan need to be repaid?
The loan is typically repaid when you sell your Victoria home, permanently move out, or the last borrower passes away. Your estate is given ample time to settle the loan.
Will I still own my home?
Yes, absolutely. You retain title and ownership of your Victoria home, and you're responsible for maintaining it and paying property taxes and insurance.
How much money can I typically access?
The amount usually depends on your age, your Victoria home's current appraised value, and the lender's specific programs. Generally, the older you are, the more you may be able to borrow.
