Debunking the Myths About Reverse Mortgages
A reverse mortgage is one of the most common retirement tools, and it allows you to use tax-free cash if you have to cover-up any unexpected expenses. Known as the safest egg nest for a retiree, you can also put it out for home repairs, bills, and travels. However, several reverse mortgage myths have been floating around, creating a sea of confusion about home equity among most retired homeowners. Believing these misconceptions could dissuade you from accessing this product as financial support. To help you understand and steer clear of some misconceptions surrounding this mortgage solution, Cody Rowe - Mortgage Specialist, has debunked some of the most widely believed myths about reverse mortgages.
Myth 1: “A reverse mortgage will force me out of my home!”
One of the core benefits and reasons behind using a reverse mortgage is its ability to help seniors stay in their homes. The only time you are required to repay the reverse mortgage, which could result in a sale of the home, is when YOU DECIDE that you no longer want to reside in the home as either your principal residence or secondary home. You will never be forced to sell due to missed payments because they’re not required or anything related to income, credit, or personal health.
Myth 2: “I will owe more on the mortgage than the home is worth!”
HomeEquity Bank, the issuer of the CHIP reverse mortgage, provides a ‘No Negative Equity’ guarantee. This means that if your home decreases in value when you sell, you will be protected. Keep in mind that 99% of reverse mortgage clients are able to retain equity, usually over 50%. If retaining equity in your home is essential to you, remember that you always have the choice to make optional payments.
Myth 3: “I thought a reverse mortgage was only for those on a restricted budget.”
There are many ways a reverse mortgage can be utilized. It’s not just for those with low income who are trying to stay in their home. We’ve seen many of our clients use this program in various ways, such as helping family members with a down payment on their first home or an early inheritance. You can also use it to purchase a vacation home, an investment property, or upgrade your current residence.
If you’re looking to steer clear of these myths about mortgages, reach out to Cody Rowe - Mortgage Specialist. As a leading mortgage broker in Victoria, BC, I will help you create and analyze your mortgage strategies to assist you in meeting your real estate goals. I aim to help you achieve the best mortgage solution along with suitable terms and conditions for your situation. I offer top of the line mortgage services, which include first time home buyer mortgage, mortgage renewal, mortgage refinancing, reverse mortgage, private mortgage lending, self-employed mortgage, investment property mortgage, and new to canada mortgage.