With age and the diminishing physical ability that comes along with it makes life difficult. During this period, when in need of money it will be very difficult to apply for a normal loan for the formalities that are in the lending world are very time dragging. That is where the option for a reverse mortgage comes in. They are easy to apply, and they can be obtained quickly as compared to the formalities filled normal loans.
Reverse Mortgage Loan
A special loan which is made available only for the people of Canada who are over 55 years of age, it is also known as CHIP Canadian home income plan. The biggest advantage and the reason behind the popularity of this plan are, in this reverse mortgage you do not need any income to qualify for the loan. Reverse mortgages in Canada are easily available to help secure future without hassles.
Requirements For Eligibility And Qualifying For Reverse Mortgage:
- To get qualified for the reverse mortgage loan you must be an owner of a house and at least be 55 years of age.
- If the title of your house has your spouse name in it, then both you and your spouse must be at least 55 years of age. Both of your names must be listed on the reverse mortgage application.
- The home must be your primary residence, meaning you must live in it for at least six months a year.
- The lender will take in to account the condition of your home, the type and the appraised value of your home.
- The older you are, the more money you get, the more home equity you have along with how older you fetch you more money.
- You will have to provide evidence or proofs that you and your spouse have received independent legal advice.
Few Important Tips To Consider In Reverse Mortgage:
- You can take the money as a one-time lump sum; it is possible for you to withdraw the whole loan amount all at once.
- Some money on up front and the remaining over time, you can also withdraw some initial amount and withdraw the rest slowly over time.
- You must ask your lender carefully about the payment options that they have and about any obligations or extra fee they charge.
Benefits Of Reverse Mortgage:
- You do not have to pay any monthly payments or any regular installments. This saves up a lot of headache at your age where you wish to spend your time peacefully.
- Without having to sell your home, you can make some money from the value of your home and retain the title. You can also continue living in your home; in fact, it is a must that you live in
- The biggest advantage is you do not have to pay taxes for the money that you borrow.
- You can opt on what platform you would like to withdraw.