Process

Retire Your Own Way, On Your Own Terms

Process To Receive And Use Your Cash

Stress-Free Application Process

Lotus Income Is Independent From The Banks.

Our Service Is 100% Free To You, The Homeowner.

We are paid by the lender.

1
Get in touch with us by clicking here and answering 3 simple questions.
2
We patiently answer any questions you have and tell you how much money you could qualify for.
3
As experts, we simplify and streamline the application process for you.
4
After applying, we arrange a home appraisal for you.
5
You review your personalized reverse mortgage offer with an independent lawyer of your choice. We can also give you a list of lawyers in your area.
6
Receive your money.

Application Costs

Lotus Income Charges No Fees To The Homeowner.

All Costs (Except The Appraisal) Are Deducted From The Mortgage Proceeds.

1. Bank/Lender Set-Up and Loan Administration

• Banks/lenders in Canada charge a one-time fee of approximately $1795 to setup and administer a reverse mortgage.

2. Home Appraisal

• Approximately $175–$400 for most properties. This is the only out-of-pocket expense for the homeowner.

3. Independent Legal Advice

• Approximately $300 - $600 for most cases.

4. Property Taxes

• Must be either up-to-date, or brought up-to-date out of the mortgage proceeds.

93% of Canadian homeowners aged 65+ prefer retiring in their own homes.

Eligible Property Types

The Minimum Home Value For A Reverse Mortgage Is $150,000.

Most Residential Properties Across Canada Are Eligible.

Ineligible Property Types

The property types below are not eligible for a reverse mortgage. If you own any of these property types and would like to release equity (cash) from them, we can provide you with alternative options.

Commercial, storefront, and industrial properties
Rental properties, including Airbnb rentals in the primary residence
Township-owned land, Crown lands, and Native land or reserves
Any property with a history of drug-related/grow-operations
Floating homes
Co-ops, co-ownerships, and undivided ownership
Vacant land
Boarding/rooming houses
Working farms
Properties with over 160 acres

Documentation Requirements

1
Valid and adequate home insurance
2
Property tax statement (for the current year, or a deferred tax statement)
3
Two pieces of valid identification
4
If applicable, power of attorney and power of attorney Identification
5
Current statements for any debts secured by the property

Subsequent Advances

What Are Subsequent Advances?

Often the bank makes more money available to the homeowners than they want. Homeowners can request these extra funds at any time. These requests for extra funds are called "subsequent advances."

Homeowners with either reverse mortgage type (Lump Sum -or- Equity Pension) can receive their funds in subsequent advances.

Homeowners will have access to subsequent advances in two scenarios:

1. If the homeowners choose not to receive all the money available to them (that they qualify for) in a lump sum; or

2. Their home rises in value and the bank offers them more money.

Receiving subsequent advances requires no modification to the reverse mortgage agreement, and no regular payments.

Minimum Amount

The minimum amount for a subsequent advance is $5000.

Fee For Each Subsequent Advance

Each subsequent advance has a $50 processing fee, paid to the bank/lender.

Interest Rate On Subsequent Advances

1. For homeowners with a variable interest rate, interest will accrue on your subsequent advance at the current interest rate for your reverse mortgage.

2. For homeowners with a fixed interest rate, interest will accrue on your subsequent advance at a weighted average for the remainder of your current reverse mortgage term (duration). This is done when there is a difference between your interest rate and the bank's current posted rate.

Prepayment

Paying OFF the Reverse Mortgage WITHIN The First 3 Years

Within the first 3 years of getting your reverse mortgage, and in certain scenarios, you can pay it off completely according to the following table:

Timeline or Scenario	Prepayment Charge
0 to 12 months	5% of the reverse mortgage balance
13 to 24 months	4% of the reverse mortgage balance
25 to 36 months	3% of the reverse mortgage balance
Death of homeowner or last surviving spouse	No prepayment charge, regardless of when death occurs
Move to Nursing Home	Charge reduced by 50%

Paying OFF the Reverse Mortgage AFTER 3 Years

After 3 years of getting your reverse mortgage, you can pay it off completely by paying 3 months' interest on the amount you pay back.

After 5 years and in certain scenarios, you can pay it off completely according to the following table:

Timeline or Scenario	Prepayment Charge
Death	No prepayment charge
Move to Nursing Home	Charge reduced by 50%
After 5 years and within 30 days following term (interest) reset date	No prepayment charge

Paying DOWN The Reverse Mortgage

There are two options to pay down a reverse mortgage in Canada without paying any prepayment charge:

1. Once per year, within 30 days of your reverse mortgage anniversary date, you can pay down 10% of the amount owing without any prepayment charges.

2. Homeowners with a Lump Sum Reverse Mortgage have the option of setting up regular interest payments, of a fixed amount, by automatic withdrawal.

3. Homeowners have the option of combining options one and two.

Porting A Reverse Mortgage To Another Property (Portability)

If you refinance your reverse mortgage on a new property, the lenders will waive the fees. A reverse mortgage is not portable in the traditional sense. This is because reverse mortgage lenders focus on the specific property (the home) and its value, and focus far less on the borrower's income. With conventional mortgages, on the other hand, the lender requires the borrowers to have strong incomes and excellent credit histories. With a reverse mortgage, this is not a requirement.

“We decided to build a sunroom so we could enjoy some fall and winter sun without having to travel. My reverse mortgage let me build my sunroom without having to make loan payments.” - Bob H