Loan Application: You apply through a lender like Trillium Mortgage, providing information about your home, income, and other relevant details.

Home Evaluation: The lender assesses the current market value of your home in Aurora, which determines the maximum loan amount you can access.

Loan Amount Determination: The amount you can borrow depends on your age, home value, and current interest rates. Older borrowers typically qualify for higher amounts.

Accessing Funds: Once approved, you can choose how to receive the funds:-Lump sum payment, Monthly installments, ine of credit to draw on as needed, A combination of these options

No Monthly Payments: Unlike traditional mortgages, no monthly repayments are required while you continue to live in your home. Interest and fees accrue and are added to the loan balance.

Loan Repayment: The loan becomes due when you sell the home, move permanently, or in case of death. At that point, the loan balance, including accrued interest and fees, must be repaid, usually from the home sale proceeds.

Home Ownership Remains Yours: You retain full ownership and responsibility for property taxes, insurance, and maintenance during the loan term.

Minimum Age: Borrowers must be 55 years or older. Some lenders may require all borrowers or co-borrowers to meet this age threshold.

Primary Residence: The property must be your primary residence located in Aurora. Eligible property types typically include single-family homes, townhouses, and certain condominiums.

Home Equity: You must have sufficient equity in your home. Generally, at least 50% equity is required, though exact amounts vary depending on the lender and property value.

Property Condition: The home should be in good condition, safe, and well-maintained. Lenders may require inspections to confirm.

Financial Capacity: While reverse mortgages don’t require income verification like traditional loans, lenders review your ability to cover ongoing expenses such as property taxes, insurance, and upkeep.

Clear Title: You need to have clear ownership and legal title to the home, free from unresolved liens or disputes.

Canadian Residency: Borrowers should be Canadian citizens or permanent residents living in Aurora or the surrounding region.

Consent for Counseling To protect borrowers, financial counseling or education sessions may be required to ensure understanding of the loan terms.

Access Home Equity Without Selling: Unlock the value tied up in your home without the need to move or sell your property.

No Monthly Mortgage Payments: Unlike traditional loans, you are not required to make monthly repayments. This can ease financial pressure on a fixed retirement income.

Flexible Payment Options: Choose from lump sums, monthly payments, lines of credit, or combinations to suit your cash flow needs.

Tax-Free Funds: Money received from a reverse mortgage is generally considered a loan advance, not income, so it is typically tax-free.

Remain in Your Home: You retain ownership and can live in your home as long as you meet obligations related to taxes, insurance, and upkeep.

Government-Backed Protection: Some reverse mortgages in Canada have federal protections, such as a “non-recourse” clause, meaning you won’t owe more than the home’s market value when the loan is repaid.

Supplement Retirement Income: Funds can cover daily living expenses, home renovations, healthcare costs, or other financial needs during retirement.

Estate Planning Flexibility: You can coordinate reverse mortgages with estate plans to provide additional liquidity or support family needs.

Loan Limits: The maximum loan amount is based on age, home value, and interest rates. Older borrowers and higher-valued homes usually result in higher available amounts.

Interest Rates: Rates can be fixed or variable and typically higher than conventional mortgages due to the loan’s unique risk profile. Interest compounds and adds to the loan balance over time.

No Income Verification Required: Unlike traditional loans, income or credit scores are generally not required since repayment depends on the home sale.

Loan Term: There is no fixed term. The loan matures upon sale, permanent move, or death.

Property Maintenance Obligations: Borrowers must maintain the home in good condition, pay property taxes and insurance, or risk default.

Non-Recourse Loan: Many reverse mortgages have a protection clause preventing borrowers or heirs from owing more than the home’s sale proceeds.

Loan Advances: You may receive funds in several ways:-Single lump sum, Monthly payments for a set period or lifetime, A revolving line of credit you can draw on as needed

Loan Fees: Application fees, appraisal fees, legal costs, and closing fees apply and are added to the loan balance.

Prepayment: Borrowers can repay the loan early or partially without penalty, helping reduce interest accumulation.

Loan Repayment Trigger Events: The loan becomes due and payable when:-The borrower sells the home, The borrower moves out permanently (for example, to a care facility), The borrower passes away.

Sale of Property: Upon sale, proceeds repay the loan balance, including principal, interest, and fees. Any remaining equity after repayment belongs to the homeowner or heirs.

Move Out: If you decide to move permanently, the loan must be repaid. Temporary absences do not trigger repayment.

Death of Borrower: Heirs typically have options to repay the loan or sell the property to satisfy the balance.

Non-Recourse Clause: If the loan balance exceeds the home’s sale price, you or your heirs are not personally responsible for the difference.

Continued Responsibilities: While the loan is active, borrowers must keep up with property taxes, insurance, and maintenance to avoid default.

Loan Maturity Notices: Lenders usually notify borrowers or heirs well in advance of repayment deadlines.

Refinancing Options: In some cases, it may be possible to refinance the reverse mortgage if repayment becomes due but the homeowner wishes to stay in the home.

Property Valuation: Home appraisals might take longer or be less frequent, affecting loan amounts.

Fewer Lenders: Availability of lenders offering reverse mortgages may be limited, so working with trusted brokers like Trillium Mortgage is crucial.

Property Type Restrictions: Some rural or specialty properties may not qualify, requiring additional review.

Lower Home Values: This can limit borrowing potential compared to urban centers.

Regulatory Differences: Local regulations may impose additional conditions or paperwork.

Initial Consultation: Contact Trillium Mortgage via phone or email to discuss your needs and eligibility.

Application Submission: Complete the application form and provide necessary documents, including proof of age, property ownership, and home details.

Home Appraisal: An independent appraiser evaluates your home’s current market value.

Financial Review: Trillium Mortgage assesses your ability to maintain property obligations and confirms loan terms.

Counseling Session: A mandatory counseling session ensures you understand all aspects of the reverse mortgage.

Loan Approval and Offer: Once approved, you receive a loan offer outlining terms and conditions.

Signing and Closing: Legal documents are signed, fees are paid, and the loan is finalized.

Access Funds: Choose your preferred method of receiving loan proceeds.