I'm happy to introduce Brenda Jafrudy, Mortgage Professional with BRX Mortgages. Brenda is a great resource when looking into Reverse Mortgages and HELOC (Home Equity Line of Credit).
Reverse mortgages are not the same thing as a standard home equity loan. Reverse Mortgage specifically geared to help seniors access equity in their homes. As such, reverse mortgages have a specialized lending process, more targeted qualifications, and a different repayment schedule than home equity loans. In some part, these safeguards are put in place to help protect seniors using reverse mortgages.
In order to use a reverse mortgage:
Homeowners for the property must be age 55 or over.
At least one homeowner must reside in the property as a primary residence. (That means living in the home at least six months a year.)
You must own your home free and clear. (If you have an existing mortgage on your home, the reverse mortgage can be used to pay off that mortgage and any other secured debts and keep the remaining in your Bank account.
In addition, once you get your reverse mortgage, you don’t pay anything back every month. In fact, no money is due on the loan until the last homeowner on the deed passes away or moves out of the residence.
By contrast, HELOC (a standard home equity loan) is available to anyone, regardless of age. There is no residence restriction, and you don’t even need to take a course or undergo any kind of counselling before you take out the loan and get your money. You also start to pay the loan back immediately, just like you do with other lines of credit.
This is a great link to compare Reverse Mortgage with HELOC https://www.chip.ca/heloc-
Learn more at her website: https://www.brendajafrudy.com/ | mortgages@brendajafrudy.com | Tel: 416-554-3705