Question 1

Do I have to make monthly payments on a reverse mortgage?

Accepted Answer

No. A reverse mortgage does not require monthly payments. Interest accrues on the loan balance and is repaid when the home is sold or the borrower moves out.

Question 2

Can my children inherit the home?

Accepted Answer

Yes. Your heirs can repay the outstanding reverse mortgage balance and keep the home. If the home is sold, the loan is repaid from the proceeds and any remaining equity passes to your heirs.

Question 3

What are the risks of a reverse mortgage?

Accepted Answer

The main risks are a growing loan balance due to accruing interest, reduced remaining home equity, and the obligation to maintain the property and pay taxes and insurance. It's important to get independent legal advice before proceeding.

Frequently Asked Questions

Still have questions?

Frequently Asked Questions

Do I have to make monthly payments on a reverse mortgage?

What is the minimum age to qualify for a reverse mortgage?

Can my children inherit the home?

How is the amount I can receive determined?

Can I pay off my reverse mortgage early?

What are the risks of a reverse mortgage?

Which lenders offer reverse mortgages in Ontario?

Can I apply for a HomeEquity Bank CHIP Reverse Mortgage with English-language support?

What's the difference between the CHIP Reverse Mortgage and Equitable Bank's Flex Reverse Mortgage?

What is the minimum age for an Equitable Bank Reverse Mortgage in Ontario?

Still have questions?