Will a Reverse Mortgage Affect My Estate or Inheritance?
One of the most common concerns about reverse mortgages is what happens to your estate and the inheritance you leave behind.
It is a fair question, and the answer may put your mind at ease.
How repayment works from the estate A reverse mortgage is repaid when you sell your home, move out, or pass away.
At that point, the loan plus accumulated interest is paid back, typically from the sale of the home.
Whatever equity remains belongs to you or your heirs.
The no negative equity guarantee In Canada, reputable reverse mortgages include a no negative equity guarantee.
-This means that as long as you meet your obligations, you will never owe more than the fair market value of your home at the time it is sold.
Your estate is protected from owing the difference. How your heirs are affected Your heirs inherit any remaining equity after the loan is repaid.
They also have options, such as repaying the loan to keep the home.
Open conversations with your family can help everyone plan ahead.
If you want to understand exactly how a reverse mortgage would affect your estate, contact me today for a clear, honest discussion.