Why to opt for Reverse Mortgage in Canada?
Reverse mortgage is a loan which is provided to senior citizens above 62 years of age on their property. Reverse mortgage loan in Canada allows the senior citizens to convert the equity available in the home into cash, without making any monthly payments on their mortgage.
In order to qualify for Canada Reverse Mortgage Loan, the person who is looking for loan need to be 62 years of age and need to have large equity value on their property and is currently residing in British Columbia or Ontario.
The Canadian reverse mortgage loan amount is dependant on the age of the borrower who is looking for Canada reverse mortgage loan. Reverse mortgage is provided on the basis of appraised value of their home by 30-40%.More older is the home owner; the borrower can borrow more loan amount.
Even though, applying for reverse mortgage loan in Canada, the ownership and possession is still owned by the home owner as lenders registers reverse mortgage on their property. They provide money to borrowers throughout the life, instead of tracing monthly mortgage payments on loan as in the case of other mortgage. When the home owner expires, the property on which reverse mortgage loan is taken is paid back to the lender, along with accrued interest.
The interest keeps on mounting for the loan amount borrowed, by poor people for Canadian reverse mortgage.When the property is sold, 100% of the proceedings from sale, need to pay off the loan.
The estate need to pay off the loan and accrued interest rate amount, in case the home owner dies. The ownership of property is not inherited to the legal heir of the borrower.
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