Homeowners aged 55 and older are eligible. Up to 55% of the equity in your home (depending upon the age of the homeowner) may be available tax-free. It is an option that offers some unique opportunities to preserve your investments, make new investments to generate more income, and maybe even help reduce the taxes you pay.
Unlike secured lines of credit, conventional mortgages, or home equity loans, a Reverse Mortgage requires no repayment for as long as you live in your home. The loan is repaid from your estate, or by you if you decide to sell or move. The loan amount to be repaid is guaranteed not to exceed the fair market value of your home at the time it is sold, protecting the balance of your estate.
You retain complete control of your home with the freedom to move or sell at any time.
Proceeds from the reverse mortgage are tax-free, and make no difference to income-tested government benefits. This makes a Reverse Mortgage a tax-friendly alternative to taking extra RRIF withdrawals or cashing in non-registered investments.