A reverse mortgage is a solution that’s designed for Canadian homeowners above the age of 55. The goal of this mortgage is to help a homeowner turn their equity into cash which is tax-free and without the ongoing requirement of monthly mortgage payments. Sometimes you need to put in reverse before you can conquer the road ahead!

This is an opportunity for a homeowner to renegotiate their current mortgage plan and refinance at a new rate or new terms. There could be several benefits such as lowering your current monthly mortgage payment or to access the built up equity from your home for the betterment of your personal finances or home improvement projects. Generally speaking, a homeowner can potentially access up to 80% of their home’s appraised value.

Many homeowners have built equity in their home as a result of appreciation over recent years. As a result, qualifying for a second mortgage has become a little easier over time. A home owner’s personal income or credit history are always important factors but in this case, the available home equity is a major consideration.