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.
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.
Surrey / Langley Mortgage Broker
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