8 Feb

Get Your Home Equity Working for You with a Reverse Mortgage

General

Posted by: Kimberly Livingston

The notion that we should be mortgage-free is a focus many of us strive to achieve the moment we realize the dream of homeownership. But, the fact is, many outstanding expenses and debts could be powered down faster – and more economically – by tapping into your home equity with a CHIP Reverse Mortgage.

There’s no time like the present to take charge of your finances and ensure you have enough cashflow to live comfortably while also using your money how you see fit – whether that involves helping out family members, spending money on your home or making a special trip or other large purchase.

Give yourself a fresh start and plan ahead

Taking advantage of your home equity through a CHIP Reverse Mortgage and freeing up some money to pay off unsecured high-interest debt on your credit cards, line of credit and/or loan, can be a very liberating move.

You’ll find that taking equity out of your home to pay off debt will also keep more money in your bank account each month – funds that would otherwise be put towards debt payments and interest.

With access to more money, you’ll not only be better able to manage your current debt, but you can also plan ahead by taking out equity to complete some home renovations or even help your children and grandchildren with their home and/or education needs.

As a Canadian 55 years or older, you may be eligible to access up to 55% of your home equity tax-free – and without impacting your CPP or OAS income. A CHIP Reverse Mortgage is a loan secured against the value of your home and, unlike a traditional loan or mortgage, you’re not required to make regular mortgage payments. The loan is repaid only when you no longer live in your home.

By paying off your debt now and/or helping a family member when they need it most, you can put yourself and your family in a better financial position moving forward. Have questions about unlocking some of your home equity through a CHIP Reverse Mortgage? Email me anytime.

1 Feb

Reverse Mortgage Myths

General

Posted by: Kimberly Livingston

Reverse mortgages have come a long way. They have evolved from a needs-based product to a solution that many financial planners recommend as an important component of a comprehensive retirement plan.

Unfortunately, there are still many misconceptions regarding reverse mortgages. Below, the myths are separated from the facts.

Myth: The bank owns the home.

Fact: You always maintain title ownership and control of your home, and you have the freedom to decide when and if you’d like to move or sell.

Myth: You will owe more than your home is worth.

Fact: Clients can qualify for up to 55% of the appraised value of the home, 33% on average. Due to HomeEquity Bank’s conservative lending practices, you can be confident that there will be equity left in the home when the loan is repaid. In fact, over 99% of HomeEquity Bank’s clients have equity remaining in the home when the loan is repaid.

Myth: A reverse mortgage is a solution of last resort.

Fact: Many financial professionals recommend a reverse mortgage because it’s a great way to provide financial flexibility. Since it’s tax-free money, it allows retirement savings to last longer.

Myth: You cannot get a reverse mortgage if you have an existing mortgage.

Fact: Many of HomeEquity Bank’s clients use a reverse mortgage to pay off their existing mortgage and other debts, freeing up cash flow for you to use as you wish. How great would it feel to be free of regular mortgage payments?

I’m a Certified CHIP Reverse Mortgage Specialist and can answer any questions you may have!
You’ve paid into your home, now let your home pay you back to enjoy the years ahead.