Reverse Mortgage on Cottage or Rental Properties

One of the biggest challenges homeowners face when considering a reverse mortgage, is the amount of money we can lend.

Since a reverse mortgage is only due and payable at the death of the last survivor, combined with the fact that we guarantee the estate will never have to repay more than what the home is worth (even if the reverse mortgage balance is higher, we take a loss), we are very careful on how much we lend.

BLANKET REVERSE MORTGAGE

That being said, if the amount of debt that needs to be paid out of the proceeds is higher than the amount your client qualifies for, ask them if they have a COTTAGE or RENTAL PROPERTIES. We can blanket our mortgage on the principal residence + cottage + up to 2 rental properties (ex: duplex/triplex).?

Here’s an example of a deal that recently funded:

Clients age 64 + 66?yrs, had a secured line of credit with a balance of $550,000. Home was appraised at $1,200,000, which meant they qualified for $400,000. This was not enough to payout their $550,000 line of credit. They had a student rental property in Hamilton that appraised at $800,000. This meant we could lend an extra $180,000 bringing the total up to $580,000. This was enough to payout their line of credit and eliminate their $3758/month payment.

If you have any questions on blanket reverse mortgages, please don’t hesitate to get in touch!