Real People. Real Stories.
Jack (68) and Diane (67) have decided after 45 years they no longer want to remain married. Surprisingly, this is a growing trend among Baby Boomers. Jack wanted to keep the family home and he approached his bank to take out a mortgage so he could “buy out” Diane. His bank informed him that his pension income did not pass the stress test that was introduced recently. Even if they sold the house, neither of them could buy what they wanted. A Reverse Mortgage enabled Jack to buy out Diane. Another Reverse Mortgage allowed Diane to buy a house close to their daughter and her family. No payments and tax-free cash.
Jim (71) and Christine (70) met in High School, married while attending U.B.C. and have lived on the West Side of Vancouver all of their lives. Retired and comfortable they are frustrated that their kids cannot buy a house in the neighbourhood where they grew up. Jim and Christine considered using the HELOC they had on their home to help the kids with their down payment. Like every homeowner in Vancouver, the value of their home had increased significantly in the past few years. The Line of Credit was certainly an option but the payment would be anything but comfortable. Using a Reverse Mortgage, Jim and Christine were able to give their kids an early inheritance which they could use as a down payment for a house. Their kids could now settle into the area they wanted and raise their kids.
Richard (65) and Laura (65) had just retired and were looking forward to more golf (Richard) and more warm winters (Laura). They had planned to sell their house, downsize to a condo and use the rest of the money to golf more and head South for the winter. Recently, their son and his wife welcomed a baby to their family. Their first grandchild! This changed everything. Laura now had second thoughts about selling their family home. She wanted their grandchild to know the family home. A Reverse Mortgage allowed them to keep the family home and gave them enough money to buy a new truck and travel trailer. Their new plan is to spend 6 to 10 weeks every winter in Arizona and take their grandchildren camping in the summer. The family home will always be a family home.
Ron (73) and Phyllis (71) have been retired for 15 years. Both kids are grown and raising families of their own. Ron had worked for a major Canadian retailer for 30 years. He has a pension and they did put some money into an RRSP while he was working. The cost of living has gone up considerably and now Ron worries their savings may not last as long as they thought. Ron and Phyllis decided that a Reverse Mortgage paid in tax free monthly installments would allow them to draw less from their RRIF and feel more secure their funds will last. Their future is once again bright.
Peter (64) has found himself in a situation faced by more and more people his age. His Mother (88) is struggling with Alzheimer’s and now Dementia. She has lived in her house for 55 years. “I raised 4 kids as a single Mom in this house and I will stay here until they take me out in a box!” Feisty is a word used by most to describe her. The problem facing Peter and his siblings is that Mom now needs 24 hour care. They want to respect her wishes and keep her at home but the cost of care is daunting. Fortunately, several years ago,Peter was added to the title of Mom’s home for estate planning. As he is older than 55, they can qualify for a Reverse Mortgage. A Reverse Mortgage now advances quarterly, tax free deposits which cover Mom’s care as well as the maintenance of her house. She will be able to live in her house for the rest of her life.