Reverse Mortgage

LICENSE #10464

Your Dream Home Awaits.

How Does A Reverse Mortgage Work?

There’s no retirement like home. With a CHIP/Reverse Mortgage this means retiring in your own home, on your terms. Clients can turn a portion of their home equity into a source of cash. Allowing them access to a source of funds without the stress of payments. The best part is that they retain ownership of their home as well as the comfort of residing in their home. This also allows for no monthly mortgage payments until you choose to move or sell.

With the CHIP Reverse Mortgage, you are able to access up to 55%* of the equity in your home, tax-free and receive the money in a lump-sum payment, periodic instalments, or a combination of the two. The money you receive can be used in a variety of different ways, including:

Eliminating debt repayments, increasing your monthly cash flow, helping a child or grandchild, early inheritance, unexpected health care costs, home repairs and improvements, a dream vacation, and more!

Get The Facts

Pros

You receive the proceeds of the loan as tax-free cash and you can use the money as you see fit.
You can avoid pulling money out of your registered savings accounts or cashing in investments that haven’t matured, which could help you save on your taxes.
You do not make any monthly mortgage payments. All you have to do is continue to pay your property taxes, insurance, and maintenance.
You are able to stay in the home you love for as long as you like, plus you get to benefit from any future home price appreciation.
You choose how you would like to receive the funds – from all at once, to advances over time – there are flexible options.

Cons

Because there are no monthly mortgage payments required, interest rates can be higher for a reverse mortgage than other secured lending options.You receive the proceeds of the loan as tax-free cash and you can use the money as you see fit.
Although you make no regular mortgage payments, you only have to pay back the amount that you borrowed, plus interest, when you decide to leave or sell your home.
If you choose to repay the mortgage in the first five years, you’ll have to pay an early repayment charge.
The balance of the loan increases over time. This is true unless you choose to make interest payments, in which case the principal borrowed is the amount owed when you decide to leave or sell.

Common Myths Around Reverse Mortgages

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 the 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? which requires mortgage default insurance, which can either be paid upfront or added to the amount of the borrowed funds as well as a conventional mortgage option of a minimum of 20% down. Your mortgage professional will also discuss with you utilizing RRSP’s if this is an option as well as a gifted downpayment and all the first time home buyer privileges.

At Bill Schmidt Mortgages we are certified reverse mortgage specialists. We have helped many seniors who were struggling, to live a comfortable retirement so they can enjoy their golden years. If you are a senior who needs extra income, if you’re house rich and cash poor, or has an existing mortgage and wants to replace it so you don’t have to have a monthly mortgage payment. Call us and see how we can help you get a reverse mortgage so you can live a happy stress free retirement.

Bill Schmidt Mortgages

LICENSE #10464