How To Qualify For A Reverse Mortgage

Have you heard that a reverse mortgage is an alternative way to finance your retirement in British Columbia? If you have ever wondered if you qualify, let me explain some of the requirements and what lenders look for. 

Let’s first revisit the definition of a reverse mortgage

A reverse mortgage is a zero payment way for seniors to access the cash value built up in their homes without selling or moving.

In fact, the homeowner must live in the house and the outstanding balance of the reverse mortgage is deferred until the homeowner no longer resides in that home. The funds from the reverse mortgage can be used for any purpose without restrictions.

Eligibility

Qualifying for a reverse mortgage in British Columbia depends on:

  • The age of the homeowners on the title

    Canadian homeowners, age 55 and over, are eligible for a reverse mortgage. There is no maximum age, in fact, the older you are the more money you can access – up to 55% of the value of your home.

  • The type of property

    Most types of properties are eligible for a reverse mortgage including single family dwellings, condo apartments, and townhouses.

  • The home location

    The loan amount may vary depending on whether the property is present in a rural or urban area.

  • The value of the home

    The current appraised value of the home is also considered. Any secured debt against the home must be paid off with the proceeds from the reverse mortgage.

 

Here’s a short video from Bob (HomeEquity Bank) that explains how to qualify for a reverse mortgage.

 

Reverse Mortgages in BC Contact Us

Jaret Forman
Surrey / Langley Mortgage Broker
604-816-5988
Feel free to contact me Monday to Saturday between the hours of 8:00 am to 6:00 pm PST
Emails will responded to within 24 hours.