Look this is not my first rodeo. And let me tell you something: I would not be here telling you about Reverse Mortgages if I knew it was a way for a bank to take advantage of a senior, or worse force a Canadian senior to leave the home they loved.
A reverse mortgage is not a way for the bank to take away your home. It is a loan, like any other. The big difference is how you pay it back! It is a loan designed for older homeowners and has helped millions of older Canadian homeowners live the retirement they want.
Other mortgages are paid each month, but with a Reverse Mortgage you can pay it whenever you can, when it works for you or you can wait and pay in one lump sum whenever you decide to leave the home or leave it for your estate to pay back. Your beneficiaries still retain the equity after paying back the loan and the interest owed.
A reverse mortgage is a simple idea really. Just like you invest your money in a bank for them to do what they do and give you compounded interest where they do not give you interest monthly but just add it to your investment – in Reverse!! The bank gives you money to do what you what you want, say pay bills, renovate the home, go on a vacation, invest, or help your children or grandchildren. You just pay it back with interest when you decide to sell, or you pass it on to your estate to pay. Most importantly you still own your home! It is a product designed for seniors and it has helped hundreds and thousands of Canadian seniors live a more stable and secure retirement and to stay in the home they love.
Reverse mortgages are not for everyone… but it is right for seniors who are on limited pensions and want to live their retirement on their terms.
IF FOR ANY REASON the amount you owe on the mortgage plus the interest exceeds the value of your home – the bank is REQUIRED to take the loss. This is how Reverse Mortgage in Canada is mandated – to protect seniors.
To learn about about the downsides of a reverse mortgage, click here