Reverse Mortgage Myths
Let’s separate the Myths from the Facts.
The bank owns the home
The homeowner always maintains title ownership and control of their home and they have the freedom to decide when and if they would like to move or sell.
Reverse Mortgage rates are too expensive because the rates are high
Reverse Mortgage rates are modestly higher than regular mortgages because there are no payments required.
A Reverse Mortgage is a solution of last resort
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.
A Home Equity Line of Credit (HELOC) is a better option
HELOCs are a good short term borrowing option for people who can pay the interest and loan in the near future. However, HELOCs are callable loans with monthly payments and there exists a significant risk of non-renewal or cancellation.
In comparison, a Reverse Mortgage is a long term financial solution that won’t be called based on economic changes such as interest rates increasing, property values decreasing, or a change in the homeowner’s income. Also, money from a Reverse Mortgage provides the ability to prolong retirement savings.
Those with a Reverse Mortgage will owe more than their house is worth
A Reverse Mortgage is approved based on conservative lending practices and will only allow clients to take a maximum of 55% of the home’s appraised value. In fact, 99% of Reverse Mortgage holders have equity remaining in the home when the loan is repaid. The average client still has 50% of their equity when they sell.
The bank can force the homeowner to sell or foreclose at any time
A Reverse Mortgage is a lifetime product and as long as 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 Reverse Mortgages provide peace of mind that the homeowner can stay in their home as long as they’d like.
The homeowner cannot get a Reverse Mortgage if they have an existing mortgage
For clients that have an existing mortgage, the first step we will take is to pay off your conventional mortgage along with any other secured debt.
Surviving spouses are stuck paying the loan after the homeowner passes away
Surviving spouses can choose to remain in the home without having to make a payment unless they choose to sell the home.
HomEquity Bank and Equitable Bank are the only two providers of the CHIP Reverse Mortgage, they are both federally regulated Schedule 1 Canadian Banks and both provide reverse mortgages in Canada for homeowners 55 and over. They are dedicated to exclusively servicing seniors and providing seniors with a mortgage solution that is flexible, and affordable.
I was a first time home buyer and really didn’t know what to expect. I wasn’t sure what my price range was or if I could even afford to get into the market. However, Jeff and the Ingram Mortgage Team showed me it that becoming a home owner was possible and I was approved in no time. I thought the whole process was going to be nerve racking and uneasy, but Jeff illustrated such optimism and care towards my family and I that it made it impossible to be uneasy. Thank you Ingram Mortgage Team for being a key component to an important stage in my life.
Jeff helped us with each of our last two mortgages. In each case he was proactive and went the extra mile to ensure that we found the mortgage that was right for us. Jeff’s creativity and ability to see the ‘big picture’ ensured that we got the best rate possible, even in difficult circumstances. We have been extremely happy with the Ingram Mortgage Team.
Jeff Ingram and his team were great! He was easily accessible and answered every question I had. What I appreciated the most was his ability to take our full needs into consideration and present us with different solutions. He also negotiated the best rate for our circumstance and took the time to explain the process, calming any fears we had. Real-estate is a large investment, whether you are just starting or if you have been in it for a while. Either way, I would have no problems recommending Jeff and his team for his experience, availability, insight and hard work!
Colby & Shannon Smith
My wife and I were struggling with credit card debt. We were making our payments, but we weren’t making any progress. We went to the bank we had our mortgage with and they told us they couldn’t do anything for us. I spoke to Jeff about our problem and he was able to use the equity in our mortgage through a refinance and he got us a rate that was much better than what any of the banks were offering. Now, we are able to focus our money where we want it and are saving hundreds in interest, all thanks to the IMT.
I have purchased several properties in the last 15 years and have always gone through the bank for my mortgage. For my latest purchase I went through Jeff as my mortgage broker. The difference between Jeff as opposed to the bank is that he actually goes out and finds the best rate for you. He was always available for any questions and made the entire application process effortless from start to finish. I would recommend Jeff and the Ingram Mortgage Team to anyone looking for a mortgage. He will save you thousands over dealing with the bank.
Trent & Misha
We had the pleasure of working with the Ingram Mortgage Team during the recent purchase of our first home. Jeff always went above and beyond to explain the details of what we needed to know for our mortgage needs. He did all the research for us, secured the best rate (better than any bank), and always stayed on top of all the current information. We always felt very confident that Jeff had our best interest at heart and that we could trust him fully. We couldn’t ask for more in a Mortgage broker and we will definitely be recommending him to all of our future home-buying friends and family. A sincere thank you Jeff and the Ingram Mortgage team!
I was very appreciative and impressed by how hard Jeff worked for us to find the lowest interest rate and terms available. Jeff went the extra mile, or more, for us by always being available and ready to answer any and all questions that we may have had. Jeff has integrity and is a dedicated and honest mortgage broker. He works hard for his clients. I wouldn’t hesitate to recommend him!