Reverse Mortgages Alberta | 55+ Home Equity Options
Getting you the mortgage you deserve
What Is a Reverse Mortgage?
A reverse mortgage is a loan secured against your home that is specifically designed for homeowners aged 55+.
Instead of making regular mortgage payments like you would with a traditional mortgage, the interest is generally added to the mortgage balance.
The loan typically becomes due when you sell the home, permanently move out, or the last borrower passes away, subject to the lender's terms and conditions.
You continue to own your home and remain on title.
You are also responsible for maintaining the property and keeping property taxes, insurance and other required obligations current.
Why Do Canadians Consider a Reverse Mortgage?
Everyone's situation is different. Some homeowners have spent decades building equity in their homes but find that their retirement income doesn't provide the same financial flexibility.
Funds from a reverse mortgage may potentially be used for things such as:
- Paying off an existing mortgage
- Consolidating higher-interest debt
- Supplementing retirement income
- Home renovations or accessibility upgrades
- Helping with unexpected expenses
- Travel and lifestyle expenses
- Purchasing another property
- Helping children or grandchildren financially
- Providing a down payment or early inheritance
- Creating additional monthly cash flow
- Establishing a financial reserve
How you use the funds is generally up to you, subject to the mortgage and lender requirements.
Stay in the Home You Love
For many Canadians, their home represents decades of hard work, memories and financial investment.
You may not want to sell simply because you need access to additional cash.
A reverse mortgage may allow you to access some of your home's equity while continuing to live in your home.
There are generally no required regular mortgage payments, provided you continue meeting the obligations of the mortgage.
Do I Still Own My Home?
Yes.
A common misconception is that the lender takes ownership of your home.
With a reverse mortgage, you remain the owner and stay on title.
You are responsible for meeting the ongoing obligations associated with the home and mortgage, including property taxes, home insurance and maintaining the property.
How Much Can You Access?
The amount available through a reverse mortgage depends on several factors.
Your Age
Generally, the older the youngest homeowner, the greater the percentage of equity that may potentially be available.
Your Home's Value
Your property will generally need to meet the lender's valuation and property requirements.
Your Location
Where your home is located can affect the amount and options available.
Existing Mortgages or Secured Debt
Existing financing registered against the property will generally need to be considered as part of the reverse mortgage transaction.
Every situation is different, which is why we start by reviewing your specific property and financial goals.
What Happens to My Estate?
This is an important question—and one we encourage families to discuss.
Because you aren't normally making regular mortgage payments, interest is added to the outstanding balance over time. This means the amount of equity remaining in the home can decrease.
When the mortgage eventually becomes due, the outstanding balance is repaid according to the lender's terms.
Any remaining equity after the mortgage and applicable costs are paid belongs to you or your estate.
We can help illustrate how the mortgage balance could change over time so you and your family can make an informed decision.
Can I Pay the Mortgage Off Early?
Reverse mortgages are designed as longer-term financial products, but circumstances change.
Depending on the lender and mortgage product, you may have options to make payments, repay a portion of the mortgage or pay it out completely.
Prepayment charges or other costs may apply, particularly if the mortgage is repaid earlier than anticipated.
We'll review these terms with you before you proceed.
Reverse Mortgage vs. HELOC
A reverse mortgage isn't the only way to access your home's equity.
Depending on your income, credit and financial situation, you may also want to compare it with:
Home Equity Line of Credit (HELOC)
Traditional Mortgage Refinance
Reverse Mortgage
Other Home Equity Solutions
A HELOC or traditional refinance may offer a lower borrowing cost in some circumstances, but they normally require borrowers to qualify based on income, credit and debt-servicing requirements and usually require ongoing payments.
A reverse mortgage works differently and may be an option for homeowners who want access to equity without regular mortgage payments.
The important question isn't simply:
“Can I get a reverse mortgage?”
It's:
“Which option makes the most sense for my situation?”
Helping Your Children or Grandchildren
Some homeowners choose to access home equity while they're alive rather than having their family wait for an inheritance.
Depending on your circumstances, funds could potentially be used to help family members with:
A first-home down payment • Education • Paying down debt • Starting a business • Major life expenses
Accessing home equity affects your own finances and the equity remaining in your estate, so it's important to understand the long-term impact before making this decision.
You Have Options
At Value Mortgage Solutions, we can explore reverse mortgage solutions from multiple providers rather than assuming one product is right for everyone.
We'll help you understand:
- How much equity may be available
- Current rates and applicable fees
- Different ways funds can potentially be advanced
- How interest affects the balance over time
- Prepayment options and potential penalties
- Alternatives to a reverse mortgage
- What happens when the home is eventually sold
- Questions you may want to discuss with your family and professional advisors
Is a Reverse Mortgage Right for You?
There isn't one answer that applies to every homeowner.
For some Canadians, a reverse mortgage can provide additional financial flexibility during retirement.
For others, a HELOC, refinance, downsizing strategy or another solution may make more sense.
That's why our first conversation is about your goals—not selling you a product.
Let's See What Your Home Equity Could Do for You.
If you're 55+ and own a home in Alberta, let's have a conversation about your options.
You spent years building equity in your home.
Now let's determine how that equity can fit into your retirement strategy.
THINK OUTSIDE OF THE BOX.
Ken Faminoff
Senior Mortgage Broker
Value Mortgage Solutions | Mortgage Architects – Team Borle
Serving Calgary, Okotoks, High River, Foothills County and homeowners throughout Alberta
[EXPLORE MY 55+ OPTIONS]
[REQUEST A REVERSE MORTGAGE QUOTE]
Reverse mortgage eligibility, loan amounts, rates, fees and terms are subject to lender guidelines, property requirements and borrower circumstances. Interest accrues and increases the mortgage balance over time. Independent legal advice may be required. This information is general in nature and is not financial, tax or legal advice.
