Myths and Facts About Reverse Mortgages in Canada- Ask Bob
People believe a lot of things that just aren’t true. One popular myth is that Vikings had horns on their helmets, that’s just not true; someone made that up hundreds of years ago and people still believe it today. Unfortunately, people also believe a lot of myths about reverse mortgages. A reverse mortgage is a financial solution for seniors, which lets you turn some of the equity in your home into cash. Unlike most mortgage-based financial products, you’re not obligated to make any payments until you choose to move or sell.
Let’s separate fact from fiction as we review with Bob some of the most prevalent myths about reverse mortgages so that you too, can be pleasantly surprised as you learn about options for financing your retirement.
Myth #1: The bank owns the home.
Fact: The title of the property remains in the homeowners’ name the whole time, the bank simply has a first mortgage on the title. Unlike a traditional mortgage where you are making payments to the bank, a reverse mortgage pays you. It’s that simple. A reverse mortgage is securited against your property and title remains in your name at all times. You always maintain ownership of your home and you’ll never have to move or sell. Once we establish how much you are eligible for you can receive your tax-free cash. You make no monthly payments.
Myth #2: Unpaid interest will erode equity.
Fact: Many people think that the unpaid interest will erode their equity. Our conservative lending practices ensure that your home equity is protected through time. A home valuation will be ordered at the time of the loan request to determine the current value and the value of the home will never drop below the amount of the reverse mortgage – securing your equity and investment. What makes this program work is that participants only take up to 55% of the value of their homes, which ensures you have access to the cash you want and also the security you need.
Myth # 3: A reverse mortgage is a solution of “last resort.”
Fact: Today, many of the financial professionals agree that the reverse mortgages have evolved from a needs-based product of “last resort” to a true and viable option to be considered as one component in an overall and more comprehensive retirement plan.
With a CHIP Reverse Mortgage from HomeEquity Bank, Canadian seniors can get the money they need to finance their retirement and if anyone tells you that Vikings created the first Canadian reverse mortgage make sure to tell them that that’s a myth too. HomeEquity Bank did in 1986.
Call toll-free 1-877-421-2447 for your free, no obligation information guide from HomeEquity Bank to clear more myths about reverse mortgages and about all the ways a reverse mortgage can help retirement planning for Canadian seniors.