are legislated so that you will never
owe more than the current market
value of your home when you sell
or move to a retirement unit.
There are three options
to access the funds in a
reverse mortgage:
1. Single payment or lump-sum:
The homeowner gets the full
amount of funds approved.
2. Initial lump-sum with
subsequent advances: The
homeowner takes less than the
full amount of funds approved,
the minimum of which is
$25,000, and the balance is
set aside for future advances.
3. Initial lump-sum and
following monthly payments
(advances): The homeowner
gets an initial $25,000
advance, then monthly
payments are made until the
full amount of the funds
approved is reached.
Documents needed for a reverse
mortgage include government-
issued identification, an appraisal
of the home from a lender-
approved appraiser, and proof
that independent legal advice has
been obtained.
Costs associated with setting
not-so-good reasons for obtaining
a reverse mortgage — depending
on your life situation. You must
be the primary resident or owner
and the home must be valued
at more than $250,000. The
maximum amount borrowed at
age 55 would be 15%, while at
And now it would apparently
be easy to get money from your
home to do things you want to do.
up a reverse mortgage include a
one-time lender administrative
fee, legal fees for the independent
legal advice, and the appraisal fee.
After consideration, there are
some good and some perhaps
age 83 it would be 55% of the
appraised value of the home. It is
important to talk with a mortgage
agent and independent financial
adviser. Prepare well in advance
any questions you believe are of
interest or importance to you.
Be sure to get answers to these
questions — and obtain a
response that satisfies you
— before acting. ●
news&views AUTUMN 2019 | 61