Are you eligible for a reverse mortgage in Toronto?

After purchasing your home, you may be looking for additional financing without having to sell the property. Lenders have different eligibility criteria for reverse mortgage applications. Typically, the applicant must be a homeowner of at least 55 years of age. If you have more than one name on your home’s title, these individuals must also meet the eligibility criteria.

A reverse mortgage in Toronto allows you to tap your home equity and borrow up to 55% of the current property value. With a reverse mortgage, you no longer need to pay for the loan until it’s due. However, if you want to move out or sell the home, you will be required to make payments. As you go along without making payments, your interest increases, and this may result in reduced equity in your home.

Note that you can only take a reverse mortgage if you live in the home as your primary residence. This often means that you must prove that you live in the home for at least six months a year. You must also have sufficient equity.