Do I Still Own My Home With a Reverse Mortgage?
Yes. A reverse mortgage is a loan secured against your home. It does not transfer ownership of the property to the lender. You remain the homeowner, subject to the terms and obligations of the mortgage.
← Back to Reverse Mortgage QuestionsThe Lender Has a Mortgage Against the Property — Not Ownership of the Property.
Just as with a traditional mortgage, the lender registers its security against the home. You remain on title and continue to own the property while the reverse mortgage is in place.
You Remain on Title
Taking a reverse mortgage does not remove you from ownership of the property. You continue to be the registered homeowner.
You Continue Living in the Home
Subject to the mortgage terms, you can continue living in and using the property as your home.
The Lender Registers a Mortgage
The reverse mortgage lender has security registered against the property, similar in principle to other mortgage financing.
You Remain Responsible for Property Taxes
Homeownership obligations continue. Property taxes generally need to remain current under the terms of the mortgage.
You Maintain Property Insurance
Appropriate property insurance generally needs to remain in place while the reverse mortgage is outstanding.
You Maintain the Property
The homeowner remains responsible for maintaining the property in accordance with the lender's mortgage requirements.
The Bank Does Not Take Ownership of Your House.
One of the most common concerns about reverse mortgages is that the lender somehow becomes the owner of the property. That is not how the mortgage works.
The reverse mortgage is debt secured against the home. You continue to own the property, while the lender has a registered mortgage that must eventually be repaid according to the terms of the loan.
Your ownership does not transfer to the reverse mortgage lender.
The lender's interest is the mortgage registered against the property.
The value of the home less the outstanding mortgage and applicable costs represents the remaining equity.
Your rights and obligations are governed by the actual reverse mortgage agreement.
Your Equity Is Not Automatically Given to the Lender.
The reverse mortgage balance can increase over time if interest is added to the loan. That can reduce the amount of equity remaining in the property, but the lender does not automatically receive the entire value of the home.
Interest Can Accumulate
If you choose not to make voluntary payments, interest can be added to the reverse mortgage balance over time.
The Balance Can Grow
As interest accumulates, the amount owing under the reverse mortgage can increase.
Property Value Can Change
The amount of equity remaining also depends on what happens to the property's market value over time.
You Can Sell the Home
If you sell, the reverse mortgage is dealt with from the transaction according to its payout terms.
Remaining Equity Is Yours
After the mortgage and applicable sale or closing costs are paid, the remaining equity belongs to you.
Review the Actual Mortgage Terms
Repayment events, homeowner obligations and other conditions depend on the specific lender and reverse mortgage agreement.
You Still Own Your Home.
A reverse mortgage is financing secured against your property. It does not transfer ownership to the lender. You remain the homeowner while the lender holds a registered mortgage that must eventually be repaid according to its terms.
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