What Is a Reverse Mortgage?
With a traditional mortgage, money is loaned to a borrower to purchase a home and he/she repays the loan with monthly payments over a set period of time. With a reverse mortgage, a homeowner accesses equity already built up in the home to access a lump-sum or monthly payments from the lender. Reverse mortgages are not required to be repaid as long as the owner and/or his/her spouse remains in the home. At such a time, the entire amount is repaid to the lender, usually with the proceeds from the sale of the home.
This type of loan is generally intended for those who are either retired or close to retirement, and who will be looking to sell their home at the end of the loan period. In order to qualify for a reverse mortgage, an individual and his/her spouse most both be at least 55 years old. As well, the property in question must be either entirely owned or almost entirely owned by the borrower.
Several different options are available for receiving a reverse mortgage. In a “term” option, a fixed monthly payment is distributed for a specific amount of time. In a “tenure” option, a fixed monthly payment is made for as long as the owner lives in the home. In a “line of credit” option, the owner can retrieve any portion of the qualifying amount at any time, limited only by using the entire amount of equity. Financial institutions are usually willing to agree to a combination of monthly payments and a line of credit.
Reverse mortgages can be advantageous in several different ways. If a homeowner is looking to make home repairs or pay off the original mortgage, a reverse mortgage can assist. Disbursements through a reverse mortgage are considered non-taxable income, so the full amount is given directly to the homeowner. Because earnings from a reverse mortgage aren’t taxable, they don’t count towards eligibility for pensions and other funds.
Reverse mortgages are useful tools, but they aren’t suitable for everyone. The best way to determine whether you could benefit from a reverse mortgage is by consulting your mortgage broker.
What is the GLM Mortgage Group?
GLM Mortgage Group, powered by Dominion Lending Centres, is your Vancouver and Lower Mainland Mortgage Brokerage service. We are always ready to move forward with you to obtain the mortgage you need with the sharpest mortgage rate available. Whether it’s a fixed rate or variable rate mortgage you are after, we are dedicated to finding the best mortgage rates in Vancouver, including Home Loans, Consolidation Loans, Lines of Credit and more. No matter what you need, our team of Mortgage Specialists will follow through to find the best mortgage product that fits your individual circumstances. Our free online mortgage calculator keeps you informed on how much your mortgage payment will be as well as show how different mortgage rates will affect the mortgage you require.As your Vancouver mortgage broker, GLM Mortgage is committed to clear communication with our clients. We make sure you are informed on all the mortgage options available to you. We call you back within 90 minutes to make sure that you have the fastest service available. We are not only available in Vancouver and the Lower Mainland, we are also available across Canada.GLM Mortgage Group is your Vancouver mortgage specialist. With over 22 years of experience in the investment industry we know how to wade through the challenging process of getting a mortgage. We provide smarter options to putting your mortgage in place. We know how important it is to have an experienced professional Mortgage Specialist available to walk through your mortgage experience and stay with you through to the very end.We get you a fast “YES” at the sharpest rate… guaranteed! Call us now so that you can get that mortgage you’ve been waiting for. We already have been working for you, making sure that you will have every option of a mortgage available to you. GLM Mortgage Group is on call for you!