REVERSE MORTGAGES IN ONTARIO
A reverse mortgage is a special type of mortgage that allows homeowners over the age of 55 to borrow money against their property as a line of credit, lump sum, or fixed monthly payment. As of April 2023, the only two financial institutions in Canada that offer reverse mortgages are HomeEquity Bank and Equitable Bank. To be eligible for a reverse mortgage you must be at least 55 years old and the property must be your principal residence. Reverse mortgages may involve various fees including set-up fees, home appraisal fees, pre-payment penalties, and any applicable legal fees. Subject to certain exceptions, the borrowers in a reverse mortgage are not required to make monthly payments.
If you are planning to apply for a reverse mortgage, it is recommended to consult with an experienced real estate lawyer who can provide guidance throughout the application process and handle any associated transactions as necessary. For more information on reverse mortgages, you can visit the Government of Canada’s website, which discusses reverse mortgages in detail.
If you are involved in a reverse mortgage transaction, contact us today to set up an initial consultation. Our real estate law team has the experience and knowledge to assist you throughout every step of the transaction.
Disclaimer: The information contained in this article is not to be construed as legal advice. The content is drafted and published only for the purpose of providing the public with general information regarding various real estate and business law topics. For legal advice, please contact us.
About the Author:
Shahriar Jahanshahi is the founder and principal lawyer at Jahanshahi Law Firm with a practice focus on representing business star-ups and investors in the province of Ontario. For further information about Shahriar Jahanshahi, click here.