REVERSE MORTGAGES

A reverse mortgage is a mortgage loan that does not require monthly mortgage payments. It gives older homeowners the ability to access the equity in their homes without having to manage a mortgage payment. Proceeds from a reverse mortgage are tax-free. It is not a taxable income, so it does not affect your Old Age Security (OAS) or Guaranteed Income Supplement (GIS) government benefits that you may be receiving. You can use the money any way you wish. The only condition is that any outstanding loans (e.g., existing mortgage or home equity line of credit) secured by your home must be paid out with the proceeds of a reverse mortgage.

You will never be asked to move or sell to repay your Reverse Mortgage as long as you live in the home. All that is asked is that you maintain your property and stay up-to-date with property taxes, fire insurance, and condominium or maintenance fees. The full amount of the mortgage only becomes due when you and your spouse no longer live in the home.