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Alterna Savings, in partnership with Equitable Bank, is proud to offer reverse mortgages to our qualified members. With this innovative financial product, homeowners over 55 years old can access the equity they have built in their homes without the burden of monthly payments. This partnership will provide members with a reliable and trustworthy option for accessing their home equity.
What is a reverse mortgage?
A reverse mortgage is a simple way to turn a portion of your hard-earned home equity into tax-free cash—with no ongoing payments required.
- Borrow up to 59% of your home’s value
- No monthly mortgage payments required
- Receive your tax-free funds as a lump sum or over time
- Retain ownership of the home you love
A reverse mortgage turns your home equity into cash that can be used any way you like.
Reasons to Consider a Reverse Mortgage
If you’d like to boost your retirement income, a reverse mortgage allows you to access up to 59% of your home’s equity in tax-free cash.
You can take your reverse mortgage cash as either a one-time lump sum payment, as monthly payouts, or as ad hoc advances when you need them.
Some of the more popular reasons for taking on a reverse mortgage include:
- Stay in your home and avoid having to move, sell or downsize
- Boost retirement income and cash flow
- Pay off high interest debts
- Cover health expenses, including home care
Benefits of a Reverse Mortgage
- All borrowers on title must be 55 years of age or older
- Property located in Ontario - up to 10km outside major urban centres
- Property must be owner-occupied principal residence
- Minimum Property Value: $250,000
Myths and facts of reverse mortgages
Although there is growing interest in this financial product, which allows Canadians to borrow up to 55% of their home’s value, some misconceptions still persist. We’ve fact-checked the seven most common myths about reverse mortgages.
Downsizing vs reverse mortgage: Which option is right for you?
Depending on your age, where you live currently and where you want to live in retirement, selling your home and moving into a condo may not put you as far ahead financially as you need to be.
“Which reverse mortgage is right for me?”
Two lenders in Canada offer reverse mortgages—and while their offerings are similar in many ways, there are key differences you should understand if you’re considering one.
Frequently asked questions
Absolutely! Ownership of your home is not transferred to the bank when you receive a reverse mortgage.
A reverse mortgage is registered against your home in the same way most regular mortgages or home equity lines of credit are.
At any time, the remaining equity on your home will depend on the difference between the home’s current value and the amount owing on the reverse mortgage.
Try our partner, Equitable Bank's reverse mortgage calculator to test different future scenarios based on the mortgage term, interest rate, and expected home value increase. Visit: equitablebank.ca/reversemortgage.
You can use the funds to pay off your regular mortgage, cover daily expenses, make home renovations, pay for medical bills, in-home care, trips, or to help a relative with a down payment of a home of their own. It’s completely up to you.
If you have a mortgage, it must be paid off so that the reverse mortgage can be registered in first priority. You can use the proceeds from the initial reverse mortgage advance to pay off your existing mortgage, any outstanding debt, or a lien registered against your home.
If both spouses are registered as joint tenants, the surviving spouse can continue to be a borrower and is entitled to all the benefits a reverse mortgage has to offer.
A POA for property may be used when applying for a reverse mortgage. Your attorney must have the ability to deal with real property. The POA will not be permitted to apply on your behalf simply because you are out of the country.
A home equity line of credit may be a suitable option for you, but it does require income to service, and you’ll need to make mandatory periodic payments. This can make it difficult for retirees to qualify and maintain.
ILA must be obtained by the legal titleholder of the property and, if applicable, any non-title holding spouse. ILA is provided for your benefit to ensure you understand the terms and conditions of the reverse mortgage, are of sound mind and judgement, and that you are not being pressured to sign the mortgage documents.
To reduce interest accumulation, you can limit the amount of your initial advance and take out additional funds only as needed. There’s also the option of paying down interest monthly, without a prepayment charge.
Yes. Our reverse mortgage is portable, subject to the new property meeting our eligibility conditions.
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