Do You Need Good Credit to Get a Reverse Mortgage?
If you are a Canadian aged 55 or older and own your own home, then one of the ways that you can access equity from your home is through a reverse mortgage. A reverse mortgage is when you borrow against the equity in your home and receive cash either in monthly payments (like an extra paycheck), in a large lump sum, or a combination of the two.
One of the things that makes reverse mortgages such an attractive choice is that you do not need to have good credit in order to be approved. That’s because the lender essentially has the guarantee that once you are no longer living in your home (because you have moved or died), the lender will get paid back through the proceeds of the sale of your home.
Why Should You Consider a Reverse Mortgage?
There are many reasons why people choose to get reverse mortgages. Some have unexpected expenses such as medical emergencies or home repairs that need to be done. Others reach retirement only to find out that they haven’t saved enough money to fund their lifestyle. And others simply want a way to be able to enjoy all the home equity that they have built up over the years.
Reverse mortgages can be a good way to fund these things because – unlike a credit card or personal line of credit – you do not need to repay reverse mortgages for as long as you are living in your home. And unlike other types of loans, you don’t need to have good credit to be approved.
What’s The Catch?
When you are not making payments on reverse mortgages for several years, the amount of interest that is eventually paid by your estate can be quite high. There may not be much left to leave as an inheritance to your family. Whether the benefits outweigh the disadvantages is something that you will have to consider carefully.
Contact Matrix Mortgage Global Today
Are you interested in learning more about reverse mortgages? Then contact the team at Matrix Mortgage Global today. We can help you determine whether this or one of our many other mortgage solutions is the best choice for you.