Canadians 55+ have needs that are not being met by standard real estate arrangements, but they are looking to buy and sell just as much – if not more – than their younger counterparts. HomeEquity Bank has a purpose-built solution that will provide additional options for your 55+ clients who are looking to purchase a new home – a reverse mortgage. This type of financing can give someone on a fixed income some additional money for extra expenses or home repairs. It can help your clients live out their retirement travel dreams. It can allow them to celebrate and enjoy their children’s inheritance with them now.
Whether it be moving closer to their grandkids, buying a vacation home, or moving to a house that fits their current needs, a reverse mortgage can offer some often-overlooked solutions for your client’s needs.
- Downsizing: While downsizing can free up equity in a home to pay off debt and provide income, clients worry that moving costs will be much higher than expected. A reverse mortgage gives clients the cash to get into a better home, cover moving expenses, eliminate debt, and increase cash flow.
- Upgrading: A client wants to move into a home or neighbourhood that doesn’t fit into their fixed income budget. We can use the proceeds from the sale of their home as a down payment on a new home. Then apply a reverse mortgage on the new home to complete the purchase and let them live without mortgage payments.
- Renovations: If you have a client who is ready to sell, but their home could use some renovations before hitting the market to get the best price. A reverse mortgage would use equity to make those repairs and would be paid off once the home sells. There is even the option of having no payments in the meantime.
- Buying a vacation property: A client wants to spend part of the year in a more hospitable climate or buy a cottage for the family to spend summers at, but they aren’t sure they can afford it. While keeping ownership of their current property, a reverse mortgage can give a client the funds and freedom to purchase a second property.
- Help a family member buy a home: A client wants to help their children or grandchildren purchase their first home. Unfortunately, they don’t have the cash or income to contribute. A reverse mortgage can unlock equity from the client’s home so their children or grandchildren can break into the real estate market. This is a great way for families to enjoy their intended inheritance together.
- Grey divorce: In the unfortunate event of a divorce or separation, the home often needs to be sold, leaving both parties in need of a new place to live. You can help your clients sell their current home, and then help each party purchase a new home by using a reverse mortgage to pay off the outstanding balance of the purchase.
A reverse mortgage isn’t a one-size-fits-all product but can be life-changing when used in the right circumstances. Let’s talk about how we can work together to help your 55+ clients with their housing goals.
A special thanks to HomeEquity Bank who provided the content that was adapted for this blog. HomeEquity Bank, a Schedule 1 Canadian Bank, is the leading provider of reverse mortgages to Canadian homeowners aged 55 and over as well as the main underwriter of reverse mortgages in Canada for the past 30 years. This is not an ad nor was I compensated for this blog. I just wanted to share an alternative financial solution with real estate agents that might help their clients.