There are three main factors that affect how much you’ll qualify for if you’re eligible for a reverse mortgage:
– Your age
– The value of the property
– The type of property
You can qualify for up to 55% of the value of your home, which is the maximum amount allowable for a reverse mortgage under Canadian law.
What a lot of people are surprised to learn is that, unlike most products banks offer, reverse mortgages are not impacted by your credit score. Instead, for you to qualify has much more to do with the value of your home.
It makes sense when you think about it, though. After all, you’re not paying anyone back. So even if you have a poor record of doing so, as long as your home has value, a lender will consider you for a reverse mortgage.