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February 1^st 2022 - Philip Roe

A reverse mortgage is the type of loan that is secured by a home. The great thing about reverse mortgages is that they allow you to access the equity in your home without the need to sell it altogether. Having a helpful tool, like a reverse mortgage calculator, can help you know what to expect out of that loan and what it can do for you.

With a little bit of basic information, you can know how much money you are eligible to receive. Best of all, our reverse mortgage calculator can become an invaluable tool at your disposal.

Using a Reverse Mortgage Calculator to Determine Amounts

There are several factors that determine just how much you can be eligible for in a reverse mortgage. These factors include the location of the property, the type of home, age of the homeowner(s), and the current appraised value of the home.

With these basic details, you can use our free reverse mortgage calculator to find out how much you are eligible for. Keep in mind that the reverse mortgage calculator is meant for the purposes of determining an estimate.

How Does a Reverse Mortgage Calculator Work?

The great thing is that with just a few minutes of your time, you can find out how much in a reverse mortgage that you qualify for.

The first question comes down to gender and age. Reverse mortgages can be applied for by a single homeowner or by as many that are on the title. Most reverse mortgage calculators use “homeowner 1” and “homeowner 2”, though there could potentially be more depending on the situation.

The minimum age for a reverse mortgage in Canada is 55. Keep in mind that the older you are, the more money that you may be eligible to qualify for. Also, anyone listed on the title needs to be at least 55 years old, too.

For the most accurate assessment, you will need to enter your current address, postal code included. This is one of the things that most lenders will look at. Your home type is another requirement. There are a few different options available. The most common types of homes in Canada are semi-detached, single family dwellings, townhomes, condos, and condo apartments. And, yes, the home that you have will impact the potential calculation.

Finally, estimated home value is required. In most instances, you can calculate simply based on what you think your home will be appraised for. If you have no idea, talk to someone who may have recently sold a comparable home.

These three factors are the most important when determining the value of a potential reverse mortgage. Our mortgage calculator can give you a pretty good indication of what you are eligible for so that you can be better armed when applying through lenders.

Examples and Benefits of a Reverse Mortgage Calculator

An example based on the specifications outlined above. Let’s say that a 65-year-old woman living in Moosejaw, Saskatchewan has no spouse. One of her neighbors, with a house that is quite similar to hers, sold fairly recently for $300,000. Based on all of the information above, this woman could enter the specifics into a reverse mortgage calculator and come away with an estimate of $108,000.

For seniors in Canada, there are quite a few benefits to using a reverse mortgage calculator. The first is that it is totally free to use. Having access to free tools is never a bad situation. The second is that they are super easy to use; you can get an estimate in as little as one minute.

Even better, it requires no banking information or personal information aside from your address. Lastly, you get a quality estimate as to how much money you are eligible to borrow through a reverse mortgage.

Who Do I Ask About the Pros and Cons of Reverse Mortgages?

The first place that you need to start when inquiring about reverse mortgages is with the team here at Lotus Income. We have years of experience that can get you the answers that you need. The most important thing when it comes to finding a reverse mortgage is knowledge. Being armed with the answers to your questions can mean the difference between a favorable loan and one that you regret.

Reverse mortgages have their own unique set of pros and cons and definitely are not suitable for anyone who qualifies. Discussing with a professional is a great first step and will at least give you a better understanding of this type of loan.

Call our team today or check out our FAQ page to find the answers to your questions. We can get you started down the path to a reverse mortgage today.