10 Facts That Will Make You Change Your Mind on Reverse Mortgages

HomEquity Bank sets the record straight  

TORONTO, Nov. 24, 2014 /CNW/ - There's a lack of information around reverse mortgages, and as more seniors look to this type of financing to help their adult children as well as finance their retirement - it's time to set the record straight on some misconceptions.

That's according to HomEquity Bank, a Schedule 1 Canadian Bank offering the CHIP (www.chip.ca) reverse mortgage.

Here, below, are the bank's 'Top 10 Facts That Will Make You Change Your Mind on Reverse Mortgages':

1. Once you are approved for a reverse mortgage, you are approved for life.
2. You can qualify for a reverse mortgage regardless of your credit rating or income level.
3. You will still have equity left in your home. Even after arranging a reverse mortgage, in most cases, HomEquity Bank clients have an average of 50% of the equity left in their homes.
4. You can't sign final documents without first receiving Independent Legal Advice. That means all Canadian seniors must receive independent counsel before a reverse mortgage can be arranged.
5. Arranging a reverse mortgage is not complicated. Some seniors have described arranging a CHIP reverse mortgage as 'the simplest financial transaction ever arranged.'
6. Reverse mortgage rates are as low as Prime plus 1.25%
7. Money is of course tax free, and can help you lower your overall tax liability.
8. If one spouse dies, there are no changes to the terms of the reverse mortgage. The loan does not have to be repaid and you don't have to requalify.
9. Reverse mortgages provide you with an opportunity to diversify your retirement portfolio.
10. We have different rules in Canada when it comes to reverse mortgages, so don't look to U.S. sources for information.

"More Canadian seniors are looking to a reverse mortgage as a way to supplement their retirement income. For many, it helps them to remain in their homes as they age," explains HomEquity Bank VP National Sales, Jeff Spencer.

"When it comes to finances, we want to educate Canadians on their options, and clear up misconceptions around the reverse mortgage," he adds.

How the CHIP reverse mortgage works:

1. Visit www.chip.ca or call 1.877.503.2447 to determine the amount of money available, which is based on the homeowners' age and the location and type of home as well as the home's current appraised value.
2. Access money as a one-time lump sum, as monthly payments or both – it's tailored to individual needs.
3. Up to 50% of the home's value can be accessed and the money is tax free. Unlike a traditional loan, no payments are necessary until it's time to move or sell the home.

About HomEquity Bank
HomEquity Bank is a Schedule 1 Canadian Bank offering the CHIP reverse mortgage solution www.chip.ca.  It was founded 28 years ago as an annuity based solution addressing the financial needs of Canadians who want to access the equity of their top asset – their home. 

SOURCE: HomEquity Bank