TOP 8 QUESTIONS ABOUT REVERSE MORTGAGES

Reverse mortgages can be powerful tools for Canadians aged 55+ who want financial flexibility, but the same questions come up again and again. Here are clear answers to the top 8 questions we hear most often 👇

1️⃣ Can we get a reverse mortgage if we already have a mortgage?

Yes — and paying off an existing mortgage is one of the most common uses for a reverse mortgage.

✔ the reverse mortgage first pays out the current mortgage in full

✔ remaining funds are released to you

✔ penalties and discharge fees can be covered as well

Example:

Owe $70,000 and qualify for $100,000 → mortgage is paid out and $30,000 remains available.

You are essentially swapping your mortgage for a reverse mortgage and keeping any excess cash.

2️⃣ Can we make payments or pay the interest?

Yes. You have options:

✔ pay monthly interest if you choose

✔ make one annual lump-sum payment of up to 10%

✔ OR pay nothing at all until the home is sold

Most clients choose the “no payment” option, but the flexibility is there if you prefer to manage the balance.

3️⃣ How do lenders determine the amount we qualify for?

You can qualify for **up to** 55% of the home’s value — but the key words are “up to.” Four factors determine the final amount:

✔ age of all applicants

✔ home value

✔ property location (postal code)

✔ property type

Older clients qualify for more. Urban homes qualify for more. Higher-value properties qualify for more. Detached homes usually qualify for more than condos.

4️⃣ One of us is 60 but the other is 53 — can we still qualify?

No. Both applicants must be **55+**, even if only one person is on title.

Because it’s a matrimonial home, both spouses must meet the age requirement.

5️⃣ What is involved in the application process?

Reverse mortgages are simpler than traditional mortgages.

✔ credit and income are checked but not heavily weighted

✔ ID verification and standard documentation required

✔ appraisal always required

✔ quote can be given before appraisal

The appraisal is the first real step because it determines actual lending capacity.

6️⃣ What happens if we want to sell the home?

You can sell at any time.

✔ reverse mortgage is paid off from the sale proceeds

✔ accrued interest and possible penalties are included

✔ process works just like paying out a normal mortgage or HELOC

7️⃣ Do we still keep ownership of our home?

Yes — you stay on title.

✔ you remain the owner

✔ you cannot be forced to move out

✔ no monthly payments = no risk of default for non-payment

In many ways, a reverse mortgage is safer than a traditional mortgage for seniors.

8️⃣ If we sell and buy a new home, can we get another reverse mortgage?

Yes — as long as the new property is your **primary residence** and you qualify for enough funds to pay any new mortgage balance. Reverse mortgages can also be used for purchases.

💬 Final Thought

Reverse mortgages can eliminate monthly payments, improve cash flow, and provide financial stability in retirement — but they must be structured properly. Knowing the rules, limits, and benefits helps homeowners make confident, informed decisions.

If you want a customized reverse-mortgage assessment based on age, property value, and location, message The Frontline Mortgage Group anytime.