Here are the top 3 uses for a reverse mortgage:
- Pay Off Existing Mortgage or Debt: Get a lump sum of tax free money to pay off an existing mortgage.
- Pay for home renovations that will enable you to live in your existing home longer.
- Help a child or grandchild purchase their first home with a living inheritance.
Tips on how to get the best reverse mortgage deal:
There are three main reverse lenders in Canada: HomeEquity Bank’ CHIP Reverse Mortgage, Equitable Bank, and Bloom Financial. Each has their strengths, and an experienced mortgage broker will help you navigate which one will serve you best.
- Try to get a reverse mortgage in the summer months. Reverse mortgage volume crashes over the summer months and the three lenders get more competitive to get more deals done during the slow months. Right now two of the reverse mortgage lenders are offering significant discounts on the setup fees which can mean more of the reverse mortgage money goes to you!
- Get an independent mortgage broker to help you get quotes from all three lenders. This will save you time and money as you will only have to do one application. The lenders pay the broker, so it costs you nothing! Getting that independent advice goes a long way to making sure you choose the right lender the first time.
- If you’ve chosen to use an independent mortgage broker to help you get your reverse mortgage, ask if they would be willing to help cover the appraisal or legal fees. They won’t freely offer to do this, but if asked, they will almost certainly oblige! Simply asking will likely save you on some of the fees you’d otherwise have to pay if you dealt directly with the reverse mortgage lenders For more information on reverse mortgages please give me a call at 778-400-1980.
I live in Victoria and specialize in helping seniors retire comfortably. – Richard Conover
