Mortgage Broker licensed in British Columbia
What is a reverse mortgage loan? Well let me tell you, it's usually secured by a residential property, which enables the borrower to access the unencumbered value of the property. The loans are typically promoted to older homeowners and typically do not require monthly mortgage payments.
Did you know that your home can help finance your retirement with no payments? If you are aged 55 plus, and own your home outright or be very close to finishing your payments. One main reason for the increased popularity of reverse mortgages is a simple necessity. As many homeowners are looking for options to increase their cash flow either by paying out other debts or by accessing cash to help with their day-to-day life expenses.
In traditional lending, when you take out a mortgage for a home, a lender is going to pay off the total cost of the property with a single transaction. Then you will have to make monthly payments to the lender in order to pay off the debt. Over time, all of the monthly payments that you make are going to build up equity in your home, therefore this equity can be used to apply for a new loan.