Types of Properties That Qualify for a Reverse Mortgage
Reverse mortgages are designed to help Canadian homeowners aged 55 and older access the equity in their homes. While not all properties qualify, many types of homes are eligible for reverse mortgages. Understanding which properties qualify can help you determine if a reverse mortgage is a viable option for your situation.
Eligible Properties
Most lenders offer reverse mortgages on the following types of properties:
- Single-family homes: Detached homes, bungalows, and other single-family dwellings are typically eligible.
- Condominiums: Many lenders offer reverse mortgages on condominiums, but some may have specific requirements, such as the condo being owner-occupied or part of an approved list.
- Townhouses: Townhouses and row houses are often eligible, but some lenders may have specific requirements or restrictions.
Other Eligible Properties
Some lenders may also consider other types of properties, such as:
- Semi-detached homes: Homes that share a common wall with another property may be eligible.
- Multi-unit properties: Some lenders offer reverse mortgages on properties with up to four units, provided you occupy one of the units as your primary residence.
- Rural properties: Some lenders offer reverse mortgages on rural properties, but these may have specific requirements or restrictions.
Properties That May Not Qualify
While many types of properties are eligible, some may not qualify for a reverse mortgage. These can include:
- Vacation homes: Properties used primarily for vacation or rental purposes may not qualify.
- Mobile homes: Some lenders may not offer reverse mortgages on mobile homes or may have specific requirements.
- Properties in disrepair: Properties that require significant repairs or are in poor condition may not qualify.
Next Steps
If you’re considering a reverse mortgage, it’s essential to discuss your specific situation with a professional like me. I can help you determine if your property qualifies and guide you through the application process.
