A reverse mortgage specialist will be in touch soon.
In the meantime, here are the top 5 commonly asked questions we get from people who have submitted a Reverse Mortgage Assessment form:
Frequently Asked Questions
Click on the question to reveal the answer.
There are currently two lenders in Canada who lend a specific product called a 'reverse mortgage' - HomEquity Bank and Equitable Bank. We have access to both products and will advise you as to which is the better fit for you, based on the information you provided in your application.
We work with and partner with both lenders, where we believe a reverse mortgage is the right fit for you. Despite what you may have read elsewhere, these are the only two reverse mortgage lenders in Canada. I would be careful in dealing with anyone who is falsely representing themselves in this manner.
We, ourselves, are part of the Dominion Lending Centres mortgage group - the #1 originators of mortgages in Canada now (more than any of the big banks). Dominion Lending Centres are Mortgage Brokers - that is we work with over 39 different lenders to find the best lender and best mortgage product for you.
We are not reverse mortgage lenders - HomEquity Bank and Equitable Bank are simply 2 of the 39 lenders we work with.
In addition to this, there are some products that are like a reverse mortgage - if we believe that any of these are a good fit for you, we can recommend them to you.
What we offer is impartial, objective and professional mortgage advice. We will only recommend a reverse mortgage if we believe it is the right option for you.
It is highly recommended that you speak to a Mortgage Professional before making any mortgage decisions - in the same way you'd speak to a tax accountant before making any tax decisions. The job of a Mortgage Professional is to work for you - to find you the best mortgage and give you the mortgage advice and answers that you need.
It is very common for people who have completed our reverse mortgage assessment to have spoken with HomEquity Bank. That does not stop you from being able to work with us and take our professional advice and help. We will work with HomEquity Bank to get your deal processed, if that is what we believe the right option is for you.
However, we will look at your situation and advise you as to other mortgage options - if we feel these may be a better fit. This is the advantage of us working with over 39 lenders.
Having said that, we like HomEquity Bank and their reverse mortgage product - where it is right fit. We are currently the #1 reverse mortgage brokers across all of Canada - because we provide open, transparent and valuable service to our clients. You can rest assured that you are in good hands and we won't lead you astray.
In fact, we have helped people who were initially rejected by HomeEquity Bank to be accepted for a reverse mortgage - by applying through us! This is because we can structure your application better and have strong relationships with the bank - so we know the best way to get your deal done.
Getting a reverse mortgage is easier than a traditional mortgage. However, that does not mean it is instantaneous - these are still very highly regulated and both HomEquity Bank and Equitable Bank (the two reverse mortgage lenders) are a Schdedule I Bank - meaning that they must follow legal and regulatory processes put in place.
Assuming everything goes smoothly, it should take around 3-4 weeks to arrange a reverse mortgage and get the funds. They can be done quicker, upon exception, but I would budget at least this amount of time. If you need yours done faster, please let us know.
The concept of a reverse mortgage can definitely seem too good to be true - the reason is that you are being given money and not having to repay it. Quite rightly, this makes people suspicious.
There are a couple things that I would point out. Firstly, interest is still charged on a reverse mortgage. So the lender will make money off of the deal - this is not a free lunch. What they are essentially doing is sharing in your home equity growth and buying into your home with you. Think of it like you are selling up to 55% of your home to the lender - except that the lender won't get paid until you've passed away. This is what makes it a win-win.
Secondly, the mortgage will be repaid eventually - but this doesn't happen until all the homeowners have passed away. So, while you don't see the repayment happening - it will happen - either from your Estate (selling the home) or your Heirs (remortgaging the home).
Finally, the lender does have to wait to make their money - but this is the same with all mortgages! A traditional mortgage is usually amortized over 25 years - meaning that it takes 25 years for a lender to see the full return on their money. So a reverse mortgage is not really that different - the lender will have to wait to see a return but eventually it will happen.
You should get a response to your reverse mortgage application within 1 business day. If it has been more than 1 business day and you haven't heard from someone, please let us know.