Reverse
Mortgage
A special loan for homeowners aged 55 and up.
Is This Right for You?
If you’re a homeowner and have built equity in your property, this option could be a smart financial move.
What Can It Be Used For?
You can access part of your home’s equity to cover major expenses—like home renovations.
How a Reverse Mortgage Works
A reverse mortgage is the opposite of a traditional mortgage. Instead of making monthly payments to your lender, you unlock the equity you’ve built in your home and turn it into cash—while continuing to live there.
This option is designed for homeowners approaching or already in retirement who want to supplement their income without selling their property. Because the loan is based entirely on your home’s equity, there are no income or credit requirements to qualify. Best of all, you never make monthly mortgage payments. Think of it as borrowing against the value of your home—while keeping full ownership and control.
Key Things to Know
Before deciding on a reverse mortgage, here are some important details:
Slightly Higher Rates – Reverse mortgage interest rates are generally higher than traditional mortgage rates, but you don’t make payments during your lifetime. The loan balance is repaid only when the home is sold or the homeowner passes away.
Impact on Your Estate – The money you withdraw reduces the equity remaining in your home. This means the value of your estate (what you leave to your beneficiaries) will decrease as you use your funds.
Loan-to-Value Limits – The maximum you can borrow is up to 55% of your home’s value, depending on your age, property, and lender guidelines. This limit is in place to protect you, your heirs, and your lender while ensuring the property retains value.