Reverse Mortgages for British Columbia Homeowners
Access some of the equity in your home while continuing to own and live in it.
A reverse mortgage can be helpful for some homeowners aged 55 and older, but it is not the right answer for everyone. Doug will help you understand the benefits, costs, alternatives and long-term impact before you make a decision.
What Is a Reverse Mortgage?
A reverse mortgage is a loan secured against the value of your home. It allows qualifying homeowners to convert part of their home equity into money without selling the property.
Unlike a conventional mortgage, regular monthly principal and interest payments are generally not required. Interest is added to the mortgage balance, and the loan is normally repaid when the home is sold, the homeowners move from the property or another repayment event occurs under the mortgage agreement.
You continue to own your home. You must also continue meeting the conditions of the mortgage, including paying property taxes, maintaining appropriate home insurance and keeping the property in good condition.
How a Reverse Mortgage Works
1. Review Your OptionsWe discuss your goals, existing mortgage, income, property and other available financial options. |
2. Determine EligibilityEligibility and available funds depend on factors such as age, property value, property type, location and existing debt secured against the home. |
3. Choose How to Receive ItDepending on the product, funds may be available as an initial advance, additional scheduled advances or a combination suited to your needs. |
Who May Qualify?
Reverse mortgages are generally designed for Canadian homeowners aged 55 and older who live in the property as their principal residence.
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✓ Age of the homeowner or homeowners ✓ Appraised value of the property ✓ Location of the property |
✓ Property type and condition ✓ Existing mortgages or secured debts ✓ Current lender guidelines |
The amount available is not based on one factor alone. A personal review is needed to determine eligibility and available proceeds.
How Homeowners May Use the Funds
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✓ Pay out an existing mortgage |
✓ Cover health or home-care expenses |
Benefits and Important Considerations
Potential Benefits
✓ Continue owning and living in your home |
Important Considerations
✓ Interest is added to the outstanding balance |
A Reverse Mortgage Is Only One Option
Before proceeding, it is sensible to compare a reverse mortgage with other ways of accomplishing your goal.
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✓ Conventional mortgage or refinance ✓ Home equity line of credit ✓ Selling and purchasing a smaller home |
✓ Using savings or investments ✓ Family financial arrangements ✓ Other retirement-income strategies |
Doug will help you compare the choices without pressure so you can understand which approach best fits your circumstances.
Common Reverse Mortgage Questions
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Will the bank own my home? No. You continue to own your home. The reverse mortgage is a loan registered against the property, just as other mortgages are secured against a home. |
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Do I have to make monthly payments? Regular monthly principal and interest payments are generally not required. Voluntary payment options may be available, depending on the lender and mortgage terms. |
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Can I remain in my home? Yes, provided the terms and obligations of the mortgage continue to be met. These normally include paying property taxes, maintaining insurance and taking reasonable care of the home. |
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How much can I receive? The available amount depends on the homeowners’ ages, the property’s appraised value, property type, location, existing secured debt and current lender guidelines. |
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Can I sell my home later? Yes. The reverse mortgage and applicable interest, charges or fees are paid from the sale proceeds, and the remaining equity belongs to the homeowner or estate. |
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Should my family be involved? The decision belongs to you, but many homeowners find it helpful to include family members, financial professionals and legal advisers in the discussion. |
Why Speak With Doug?
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✓ More than 35 years of mortgage experience ✓ Extensive reverse mortgage experience ✓ Clear, straightforward explanations |
✓ Comparison of available options ✓ No-pressure, personal conversations ✓ Serving homeowners throughout British Columbia |
Could a Reverse Mortgage Be Right for You?
A conversation does not commit you to anything. Doug will listen to what you are trying to accomplish, explain the available options and help you understand the numbers.
Call Doug: 604-820-4570
Reverse Mortgage Advice in Mission and Throughout British Columbia
Doug Lifford Mortgage Services helps homeowners in Mission, Abbotsford, Chilliwack, Maple Ridge and communities throughout British Columbia understand reverse mortgages and other home-equity options. Doug provides practical guidance for homeowners considering retirement cash flow, debt consolidation, home improvements, family assistance or aging in place.
This page provides general information only. Reverse mortgage eligibility, costs, interest rates, payment options and terms vary by lender and may change. Obtain personalized mortgage, legal, tax and financial advice before making a decision.