There are several differences but the most important distinction is that the Reverse Mortgage is only accessible to Canadians age 55+. If you are 55+ and not sure which option is right for you, please call or send us a message and we will quickly determine if either option is appropriate for you.
We are licensed independent Mortgage Advisors. This means that we do not work for any financial institution and that you will receive specialized unbiased advice.
Also, with one application, we have access to dozens of mortgage lenders and products.This includes reverse mortgage lenders, private home mortgage lenders, and even regular institutions such as banks and credit unions.
A mortgage based on the available home equity rather than your income or credit.
Unlike the banks, Equity Mortgages, also known as Home Equity Loans, are very flexible. The qualifications are based on your type of home, location, condition, and value. Interest rates and fees are higher than that of a bank because the lender does not focus on your income or credit and therefore absorbs more risk.
A Home Equity Loan is often used if the bank cannot approve the mortgage. Banks typically decline mortgages due to lack of income, poor or bruised credit, and high debt loads.
There are a variety of costs to consider before taking an equity mortgage. Here are the most common expenses.
Normally, the only out of pocket expense is the home appraisal. The set up fee and legal costs are usually incorporated into the new loan.
While some private mortgages charge a penalty for paying out the mortgage early, most of them have “open” terms. This means that you may pay off the mortgage at anytime without penalty.
We can normally secure a mortgage approval within 24 hours or one business day. The money will be available to you in 1 or 2 weeks.
Yes, we offer first and second mortgages up to 75% of your home’s value.
The money you receive from a first or second mortgage can be used for anything you like. Most commonly, clients use the funds to consolidate debt, pay CRA tax bills, make home improvements, invest in their business, or any other major expenses.
No, all government benefits including Old Age Security and Canada Pension Plan will remain the same.
If your spouse is on title of the home and under 55, you will not qualify for a reverse mortgage. This is a safety measure put in place to ensure you still have equity in your home when you sell or move.
GOAT Reverse mortgage brokers are independent licensed advisors. We do not work for any financial institution. This means that we provide unbiased advice and work in your best interest, not the banks.
Nothing! The best part of working with a mortgage broker is that our services are completely free for you. We earn what’s known as a finder’s fee from the lender and it’s based on the loan amount, not your interest rate.
No,you will never have to apply again. Requalification is only required if you wish to borrow additional monies.
Your surviving partner will remain in the home for as long they wish. You will never be asked to repay the loan or vacate your home before you’re ready.
Property taxes may be deferred after the reverse mortgage is put into place.
The money from the new reverse mortgage will be used to pay out your existing first mortgage. The remaining balance of funds will then be issued to you.
Yes, there are three costs to note while you consider a reverse mortgage. An independent home appraisal, Independent Legal Advice, and a one time setup fee charged by the bank. Click here for more details on the estimated costs.
You can use the money for whatever you like. Most commonly, clients like to payoff debts, make home improvements, supplement existing income, travel, and help family.
You will maintain full ownership of your home and will never be asked or forced to move or sell before you are ready.