When you hear the phrase ‘reverse mortgage’, chances are what comes to mind does not reflect the reality of reverse mortgages in Canada. A reverse mortgage is a fantastic mortgage product, and a great choice for many Canadians over the age of 55. Unfortunately, many people often get the Canadian reverse mortgage confused with its American counterpart, and this leads to three common misconceptions about the reverse mortgage product. Read on to find out more about these misconceptions.

You do not own your home

More than half of Canadian homeowners over 65 have the misconception that the bank owns your home once you own a reverse mortgage product. This could not be further from the truth! As the owner of a reverse mortgage product, you always remain in control of your home, and will never be forced to move or sell.

The estate can be charged more than the home’s value

A reverse mortgage is a non-recourse debt, which keeps you secure, even in tough times. If the borrower defaults on their loan, or the homeowner passes away, the amount owing is never more than the fair market value of the home. Nothing else can be seized, and no additional money can be taken. With most mortgage products, this type of financial security is practically non-existent, and it is one of the unique benefits of a reverse mortgage that many people are missing out on.

End of retirement is the best time to get a reverse mortgage

If you are at the end of your retirement, what do you need money for? What about at the beginning of your retirement? From paying off an existing mortgage, to unexpected medical bills, to helping pay for a family member’s post secondary education, the money from a reverse mortgage is versatile and can be put towards many things. So why not take advantage of it at the beginning of retirement? Since a large majority of Canadian retirees have no plans to sell their home, they could be reaping the benefits and tax savings of a reverse mortgage without having to pay back a penny for years.

Interested in learning more about reverse mortgages? Download my Guide To Reverse Mortgages or you can contact to today.