Our Blog

What is a Reverse Mortgage
 December 6 2022     Posted by John C Filice


As you are aware 2022 has already been tough on Canadians' wallets, and the recent economic data shows the pain is unlikely to end soon. Inflation continues to run hot, and  the Bank of Canada has signaled that further increases to its benchmark interest rate, may be on the horizon, to try to bring inflation under control.  To help offset the rising inflation costs, many Homeowners have been refinancing their homes this year, by consolidating their higher rate credit cards and personal loans into one manageable mortgage payment.
 
The new Stress Test Rules and higher rates have made it impossible for Homeowners of all ages including those over the age of 55, to refinance.  These Homeowners have great equity in their homes but now have limited cashflow to qualify for a mortgage.  
rev

A Reverse Mortgage  is  one of the best financial tools available to cash strap Canadians over 55.  They also allow Homeowners over 55 to unlock their home equity for Wealth Building Strategies, or to enhance their retirements or to assist their family.


Reverse Mortgages are a powerful tool, but for many they are one of the most misunderstood products.
 
  • Reverse Mortgages allow homeowners over 55 to access EQUITY, in their home TAX FREE 
  • Reverse Mortgage Clients never have to make a mortgage payment.
  • The Homeowners will always retain the tile of the home, and they are never are required to move or sell until they are ready to sell.
  • Reverse Mortgage Clients will also have legal advise from an Independent Lawyer who will explain the process and product.
 
Some recent examples of the Reverse Mortgages we have helped to arrange include:
  • Clients who wanted to travel extensively.
  • Parents who wanted to gift their daughter, the wedding of her dream, as well as also gifting her a deposit for a new home, while the parents were able to continue living in their original family home. 
  • Various singles and couples, who have renovated their current homes, either with regular upgrades, like gourmet kitchens and baths, or with renovations (that include Accessibility/Mobility items) that will assist them in the future. This  has allow clients the option stay in their family home and not need to worry about  finding a retirement or senior home in the future.
  • Clients who used the proceeds to invest in family businesses or the Stock Market.
  • Clients who looked to buy a secondary vacation property either for themselves or their entire family.
  • Homeowners who added a second suite for future income potential.
 
There are currently FOUR Canadian Fully Registered Institutional Lenders as well as few secondary Lenders who offer this product. 
 
As a Licensed Independent Mortgage Broker, with 30+ years mortgage experience, I will always source the best product that is suited to the client's need, as well as explain the pros and cons of the product. 
 
If you have any questions, regarding this product  OR  any other mortgage, please call or email anytime.

X


Bookmark and Share