Mortgages

Reverse Mortgage Myths vs Facts

August 1, 2023

There are still some misconceptions about the CHIP Reverse Mortgage, primarily arising from the belief that they are not regulated. In reality, reverse mortgages in Canada are highly regulated, and HomeEquity Bank is a Schedule 1 Canadian Chartered Bank.

MYTH: Your clients no longer own their home

Fact: Each CHIP Reverse Mortgage comes with a No Negative Equity Guarantee*, homeowners will never owe more than the fair market value of the property when they sell. HomeEquity Bank covers the difference if the home's value falls below the mortgage owed.

MYTH: Your clients may end up owning more than the home is worth

Fact: Clients maintain full title and control of their home just as with a regular mortgage. The only obligations they have are to live in the home, keep it well-maintained and pay property taxes and insurance.

MYTH: A reverse mortgage is a last resort solution

Fact: The CHIP Reverse Mortgage frees up equity that is teid up in the value of a home and canallow the homeowners to enjoy their retirement on their terms. In fact, many financial professionals recommend a reverse mortgage as the proceeds are tax-free and after paying off debts, can be used for anything the client chooses.

MYTH: Your clients may end up owning more than the home is worth

Fact: Similar to a conventional mortgage, clients must cover expenses for a property appraisal and independent legal advice. The only extra cost involved is a one-off closing and administration fee.

Don’t hesitate to contact me today to learn more about separating myths and facts when explaining the CHIP Reverse Mortgage to potential clients! As a mortgage expert, I understand that there are numerous misconceptions surrounding reverse mortgages, and it’s crucial to address these myths and provide accurate information to potential clients.

By reaching out, you will gain a comprehensive understanding of the CHIP Reverse Mortgage program and how it can benefit you as a homeowner in your retirement years.

Whether you have specific questions, need clarification on certain aspects, or require assistance in navigating the complexities of reverse mortgages, I am here to provide personalized guidance and support. Together, we can help you make informed decisions and explore the possibilities that the CHIP Reverse Mortgage offers for financial stability and peace of mind.

Tim Ward, Collingwood Mortgage Broker.