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Today I sat down with Tim Wachter from Equitable Bank to discuss 3 major questions I often get about reverse mortgages: What is a reverse mortgage, how does a reverse mortgage work, and who a reverse mortgage is best suited for? If you are living in Red Deer or Central Alberta and have been exploring a reverse mortgage, watch this video!

So what is a reverse mortgage? A reverse mortgage is a product that allows someone 55+ who owns their home to access their equity so they can maintain their lifestyle while staying in their home longer, with no monthly payment. It is a great solution for people who have worked hard their entire lives and now want to travel more, live comfortably, maximize their retirement, or give money to family while they are able to see it be enjoyed.

What are the benefits of a Reverse mortgage? One of the major benefits of a reverse mortgage VS a standard mortgage is that the lenders do not look at your income VS debt, instead, they evaluate the value of your home. This means it may be easier to qualify for as a person who may be living off of CPP, investments, or other retirement streams of income. Another benefit is that there are no monthly payments or tax implications for choosing to obtain a reverse mortgage.

As a home owner in Red Deer, what do you need to qualify for a reverse mortgage? The two major criteria are that you must be 55+ years of age and own your home. With this product, the total value you can withdraw is based on your age. (Watch video to learn more from Tim at 6:00 Minutes).

There are also a lot of myths surrounding reverse mortgage including, "A reverse mortgage will eat up all the equity in my house and I will have nothing to give my kids". Fortunately, that's not the case! The maximum amount a reverse mortgage can be based on is 40% of the home (with Equitable Bank, there are other options that can allow you to borrow more). Another myth is that the payments must be used towards certain expenses. That is not the case. You maintain the freedom to spend the payment however you best see fit. This can be a great option for seniors who need help to pay for in home care or other expenses. The third myth is that a reverse mortgage is more expensive than a normal mortgage. Although they are slightly more expensive, reverse mortgages have many benefits that outweigh the higher interest rate.

Does a reverse mortgage sound like a great option for you? If you own your home in Red Deer and would like to learn more about how a reverse mortgage could work for you, get in touch with me. As a Red Deer Mortgage Broker, I am able to help you learn more about your reverse mortgage options and help you through the process of obtaining one. Give me a call, email, or message (Facebook or text) and we can schedule a time to chat!

Phone: (403) 391-2053 

Email: Nicki@Mortgagegrp.com 

Website: www.mortgagewithnicki.com

Text: (403) 391-2053

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