In order for you to be approved for a reverse mortgage, there is specific criteria that the underwriting team reviews. Outlined below are several key areas HomEquity Bank considers before approving your reverse mortgage.
Do you meet the minimum requirements?
- Homeowners must both be 55 or older, own the home, and live in a province.
- The appraised home value must be at least $100,000.
- Secured debt is less than what the amount a client is approved for.
What is the property type?
- HomEquity Bank will provide a reverse mortgage on most home types (detached, semi-detached, townhomes, condos, mobile homes).
- Exceptions include: the three territories (Nunavut, Northwest Territories, and Yukon), or on native reserves.
How will the funds be used?
Did you know that reverse mortgage funds can be used in many ways? Such as:
- Travel, medical expenses, and an early inheritance to children.
- More commonly, many homeowners use the funds to purchase property.
How much can they be approved for?
Below is an example of how much you can get with a CHIP Reverse Mortgage. Your age is one of the determining factors when calculating the percentage. In general, the older your clients are, the more they can get approved for.
Protecting the remaining equity in the home is important to HomEquity Bank and our conservative lending rules allow you to retain more of the equity in your home. If you want to see how much equity you will retain I can provide you with an analysis.
This chart is for illustration purposes only. It is based on a husband and wife who are the same age. HomEquity Bank will lend less on rural properties and non-detached homes or condos.
|Age||Approximate Loan to Value|
|55||11 – 14%|
|60||16 – 21%|
|65||22 – 30%|
|70||26 – 37%|
|75||32 – 44%|
|80||37 – 53%|
|82+||39 – 55%|
This chart is for illustration purposes only. The amount you will be approved for may be adjusted due to many factors such as home type, location, outstanding home mortgage amount, single homeowner compared to dual homeowners.
All secured debt must be paid from the approved amount. If the estimated amount is not sufficient to pay out all secured debt, please contact your Business Development Manager.
For more information, please contact me at 604-961-2400.