Homebase Mortgages

Is a Reverse Mortgage Right for You?

\"\"If you’re trying to tap the equity in your home and you don’t want to leave it just yet, a reverse mortgage can help you. Working with one of our Toronto mortgage brokers you’ll understand all the benefits and disadvantages of this kind of mortgage. Sometimes you might actually not need to go this route – you could even qualify for a home equity line of credit or mortgage refinancing instead. Here we’re going to talk about everything you need to know to make the right decision for you. Never make a decision without talking to your financial advisor or talking with one of our brokers first can help you come to the right decision.

What is a reverse mortgage?

A reverse mortgage is much like selling your home without having to actually sell – you don’t have to pay the money back, but you will have to give the bank your home when you pass on. If you’re retirement age or older, have a good deal of equity in your home and really understand the terms of the mortgage, it might be the right thing for you.

You’ll want to first speak with one of our Canada mortgage brokers to find out if you can qualify. You don’t have to borrow all of your equity – if you only borrow a portion, once the time comes the bank will recoup whatever you borrowed and the rest will pass on to your heirs.

What is mortgage refinancing?

If you just want to be able to pay off your mortgage faster and spend less on your monthly payments, you might want to think about mortgage refinancing instead. This will allow you to change the payment terms you have now, along with what interest rate and monthly payment you have. If you don’t want to borrow the money to fund your retirement and would like to have it later, this may be the way for you to go.

What is a home equity line of credit?

A home equity line of credit is like a credit card; instead of using your credit as collateral you’re using the equity in your home. This is just like taking out a second mortgage – but instead of getting one big lump sum, you’ll be able to borrow as much as you need, when you need it. This can be the way to go over mortgage refinancing and a reverse mortgage when you just need a safety net for a rainy day.

Which one is right for you?

It can be hard to figure out which one will work best for you, and that’s where we come in. We’re Toronto mortgage brokers that can help you understand just which option is right for you. The last thing you want to do is get a reverse mortgage when you don’t need one (or just don’t qualify for one yet); let us help you get the mortgage or home equity line of credit that will help you get the most for your equity.

Leave a Comment

Your email address will not be published. Required fields are marked *

Homebase Mortgages