How to Choose

Things to consider when choosing a Reverse Mortgage

Your home is not just a house. It is the major proof of your life’s work in terms of ‘net worth’. It is a valuable golden egg that must remain safe and secure. And it does, even with a reverse mortgage.  Gregory Stanley both a certified financial planner and a mortgage broker will set up your reverse mortgage to  preserve that worth and that value.

There are limits to how big a reverse mortgage can be. By doing this, Gregory’s experience and industry statistics have shown that when a Canada reverse mortgage is finally repaid that there is usually over 50% ‘left’ over in home equity and value. That is lots of inheritance to pass one to loved ones. Also, most people obtain a reverse mortgage because they want to TRADE the make up of their existing mortgage or debt into one that (1) gives you more to live on each month and (2) give you a low rate of interest to pay off much higher interest rates of credit cards.

HOW WE HELP YOU –  2 testimonials:

SWAP A HIGH PAYMENT TO LOW PAYMENT (OR NO PAYMENT) MORTGAGE AND IMPROVE CASHFLOW FOR EASIER LIVING (testimonial):

“A single, hard working woman who was 61 1/2 years old with a home in a big city worth around $660,000 contacted us. She had a $60,000 mortgage with an aggressive contracted amortization imposed by her own Bank (meaning – very high monthly payments – to make it paid off by age 65), a small car loan and some small balances on credit cards. She was a nurse and was set to retire at 65 with a full pension, OAS & CPP, with a plan to have no mortgage and she planned to rent out the basement of her home after her son moved out. Currently there was no suite there. Her plan was going well, until she was diagnosed with MS. It moved very quickly and she had to go on permanent disability. Because her benefits were taxable, she was down to less than half of her previous income and couldn’t make the full mortgage payments. She went to her bank asking to have the mortgage turned into an interest only LOC or extend the amortization, but because of the lack of income, they could not qualify her. To help you out she was given a reverse mortgage for $110,000 to pay out the mortgage, car loan and credit cards, plus give her about $30,000 to build her basement suite and bridge the few years she had until her full retirement benefits started rolling in. He only other option would have been selling the home. The home is now worth over $1 million. Using income from the suite, she kept up – just making her interest payments each year – so her debt is still $110,000. So her house has risen in value and the reverse mortgage balance is the same. With a reverse mortgage you don’t have to make payments ever – but you can always pay towards the annual interest cost. A very valuable financial tool.”

A SENIOR CAN GET ILL ANYTIME THAT CAN CAUSE A HARDSHIP FOR BOTH THE SENIOR AND HER CHILDREN (testimonial):

“Sometimes we are asked as brokers to create income from reverse mortgage proceeds. One way is with an Income Advantage produce (that creates a better cash-flow solution). We greatly benefited  not only a beautiful lady in her late 70’s with moderately advanced Alzheimer’s but also helped her lift a burden off of her children. Her short-term memory was about 30 minutes; long-term memory was perfect. She was still living in the home she had raised her daughters in. Doctors encouraged the family to keep her in the home versus moving to a care facility and totally disrupting her life. Her two daughters had taken long-term leaves of absence from work to care for mom because there were no investments left, and this was beginning to take a toll on their lives. Their credit union couldn’t qualify the mother for any mortgage or line of credit because of limited income (OAS & CPP only) but suggested the daughters (joint Power of attorney) ask about reverse mortgages. We can arrange for a ‘income advantage’ program that creates an income. We did. The children are receiving $ 6500 per month to pay for full-time in-home care; the home was appraised high enough that, even with a very low loan-to-value, this cash-flow will last 10 years before reaching the authorized limit (40% of the home value).” And in 10 years time, Gregory Stanley will request a new appraisal to see how much real estate values have risen (as they usually do over a 10 year period) and have the loan ‘reset’ to the higher home value; this may allow for more funds available to adjust for future planning needs. Once you use mortgage broker Gregory Stanley he will always be there to help you.

You have to remember that over time houses have and continue to grow in value over time (think back 10 years to the value of your home). The entire value of the house is rising whereas only the much smaller amount of mortgage loan is rising. The difference is still your equity as the house ownership always remains in your name.

Here are some things to consider if you are eligible (55 years or older) to obtain a Canadian Reverse Mortgage:

  • You only get to borrow a percentage of your house’s value to a maximum limit of 40%. And you only get 40% if you are ‘older’ … in your 70’s or more. Most other seniors are eligible to borrow up to 30% only. If you want more than that then Gregory Stanley can place an home equity loan behind your new reverse mortgage.
  • This means that your house value can still rise and you still have a large portion of your home ‘untouched’. Your house may continue to grow as houses continue to do over time so that in the distant future your house will have allot of equity remaining.
  • The house title always remains in your name. You always remain on title.
  • The lender guarantees that your mortgage loan balance will never exceed your home market value as far as repayment of the mortgage is concerned. This exists ‘even if’ house values ‘never ever’ rise over time.
  • No one makes you move or sell your house. You live there (or your surviving spouse does) as long as you wish. No monthly repayments are required. Ever.
  • If you sell your house and buy another one there is an option to transfer part or all of your Canada reverse mortgage over to the next home. If the new home is the same value or more then you just move the entire balance over to the new home. If it is less, then you use part of the sale proceeds to ‘pay down’ your reverse mortgage balance and transfer the rest to the new home. It is really that simple.
  • You can get pre-approved for a maximum loan amount (currently $500,000 but can be special requested on a case by case basis) and only take the minimum of $25,000. You can take a bit now… wait a week, a few months or even a few years to get a bit more. But, with only a phone call you can access the rest of your pre-set loan amount any time you wish. Some people might be once a year … each year, for ten years or more to pay for things such as ‘home care’ services. We reallYou only pay interest on the money you actually take.

Gregory Stanley CFP CSEC (both a Certified Financial Planner and mortgage broker in Canada who tours the Country giving educational seminars (www.pro-seminars.com) to audiences completely comprised of Financial Advisors and he teaches them on how to use a mortgage broker to ‘unlock’ the home equity in homes to create additional cash flow for clients. Here are a few things that the audiences truly appreciate:

  • If you currently owe a mortgage a Canada Reverse mortgage can pay it off. And you can continue to live, stay and enjoy your home and not be bothered to make any more monthly mortgage repayments. Think of the standard of living that is improved. You have more net income to live on because you have less bills to pay monthly.
  • If you are on a fixed income and could use some extra cash or income the proceeds from a Canada Reverse Mortgage can do that!
  • By unlocking some value from your house you can pay off other higher interest rate debts or debts that ‘drain’ cash flow i.e.. a car loan. Pay off all your bills at once. Again, no monthly repayments to worry about.
  • You can make a payment if you wish to do so! Each year end, right after holidays, many seniors will pay down ‘something’ on their mortgage. They aren’t obligated to … but many do so anyway. This way your loan balance is kept at a minimum. More equity to pass on.
  • You can quit your reverse mortgage Canada loan anytime you wish. There is no charge to do so if you have owned your reverse mortgage for 3 or more years.
  • You are always in control of the mortgage. Can choose to stay or leave. Can choose to enjoy maximum access or not bother to access all the available cash to him. You are always in control and always choose your own terms.
  • It is a major way to fund home nursing care and other medical expenses in Canada.
  • Alternatively you can also get a SECOND OPINION on your current investment programs. Sometimes a better retirement lifestyle is better solved by improving income in your current investments. We can do that too. We offer very predictable, fixed income mortgage investments that allow you to avoid the ‘up and down’ bumps with investing in mutual funds.

If you fill in the reply form then you will be able to obtain expert advice. You can speak directly to Gregory Stanley by calling him 1866-658-0492 now. He is friendly to speak to and would love to make sure that you are making the best decision for you. And he is always available to speak directly to your loved ones, your children – and your financial advisor directly too!