Know The FAQ's About Reverse Mortgages - We Are Servicing Oakville & The GTA

Know the FAQs about Reverse Mortgages - Servicing Oakville & The GTA

Thousands of Canadians are using a reverse mortgage as part of their re rement solu on. Purpose-built for Canadians 55+ it allows homeowners to turn their equity into tax-free cash.

Below is a list of the most commonly asked ques ons about reverse mortgages with the right answers to get you equipped to close the deal.

 Question: Will the bank own the home?

 Fact: The homeowner always maintains title ownership and control of their home, HomeEquity Bank simply has a first mortgage on the title.

 Question: Can the bank force the homeowner to sell or foreclose at any me?

 Fact: A reverse mortgage is a life me product and as long as the property taxes and insurance are in good standing, the property remains in good condition, and the homeowner is living in the home, the loan won’t be called even if the house decreases in value.

 Question: With a reverse mortgage will the homeowner owe more than their house is worth?

 Fact: Clients can qualify for up to 55% of their home’s appraised value and with HomeEquity Bank, every reverse mortgage comes with a *No Nega ve Equity Guarantee which means that the overall debt will not exceed the cost of the loan as long as the conditions of the loan are met. In fact, 99% of HomeEquity Bank’s clients have equity remaining in the home a er the loan is repaid.

 Question: Are reverse mortgages too expensive because the rates are high?

 Fact: HomeEquity Bank rates can be more favourable than alternative lenders' rates on second mortgages or unsecured loans. Plus, with a reverse mortgage, clients don’t have to worry about making any repayments as the debt isn’t owed un l the borrower(s) pass away or no longer live in the home.

 Question: Isn’t a reverse mortgage a last resort solu on?

 Fact: A reverse mortgage frees up equity that is ed up in the value of a home and can allow the borrowers to enjoy their retirement on their terms. In fact, many financial professionals recommend a reverse mortgage as the proceeds are tax-free and a er paying off debts, can be used for anything the client chooses, from purchasing a vacation home to helping grandchildren with school tuition.

 Question: Can the homeowner(s) s ll get a reverse mortgage if they have an existing mortgage?

 Fact: A reverse mortgage can be used to consolidate existing debt, eliminate monthly debt payments and provide financial security. If a client has existing debt, these would need to be paid off first and the remainder of the funds can be used however the client chooses.

 Question: Isn’t a Home Equity Line of Credit (HELOC) a be er op on?Fact: Clients should always explore all their op ons before making a decision. HELOCs are a good short-term borrowing op on for people who can pay the interest and loan back in the near future. Whereas a reverse mortgage is a long-term financial solution that doesn’t require any monthly payments and provides the ability to prolong retirement savings.

 Question: Aren’t surviving spouses stuck with paying the loan a er the homeowner passes away?

 Fact: As long as the surviving spouse is on title, they can choose to remain in the home without having to make a repayment.

 For more information, please contact me.