Did you know that slightly more than 1/2 of all seniors – Age 65 or older – still worry about making mortgage payments. Why? Because they are still making payments because the major banks insist on you making ‘larger payments than younger people are obligated to do’ for the same size of mortgage. Many would say this sounds like a form of discrimination – and we think it is. And yet, the banks argue that they are more at risk of you or a spouse dying, so they wish to be paid off faster. This is not true. Most seniors have over 60 % of their mortgage loan paid down by age 65. The bank is not at risk at all. There is lots of equity. So why force seniors to make large payments each month? It could actually force them away from their homes. A home is special place where one has favorite times and memories in – it is a place where a senior would like to stay in as long as possible. We want to help you keep living in your home.
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.
A reverse mortgage can really change one’s life for the better. If you have a mortgage currently wouldn’t be nice not to have one anymore? The money you don’t need to pay for those mortgages would, now be in your pocket, to help you live from day to day. It would let you be able to afford of a few life’s pleasures. Making retired life easier and more fun.
Reverse mortgages in Canada have been around for a long time. It was created from a senior’s perspective, back in the 1980’s. Although reverse mortgages are quite common in the UK and the USA, there is only a couple of them in Canada.
Who do you choose? If you go direct to one you won’t get a better rate than dealing directly with us. You will get though a bank ‘promoting’ themselves as ‘the one’ to have.
Canada Reverse Mortgage is a leading authority about reverse mortgages for more than 15 years. Year after year it receives best rankings of approval as the ‘go to website’ in Canada that gives unbiased advice about whether or not a reverse mortgage is right for you.
The whole reason the website Canada Reverse Mortgage.com was founded by Gregory Stanley was to make sure that those age 55 or older could get ‘unbiased’ advice. As a mortgage broker Gregory has all the products at his disposal to make sure you get the right product for the right job. THERE IS NO FEE paid by you to speak about a reverse mortgage or even have him arrange for you to get one. It is the lender that will pay Gregory’s firm directly. And you will get the same ‘best’ rates possible for whatever term you select.
You won’t get a better rate going directly to a bank. In fact, if you go to bank you will usually only get advice to ONLY use the products that that same bank offers (which won’t be reverse mortgages). When have you ever heard of a bank recommending a different bank to go to?
A reverse mortgage is a unique home equity borrowing opportunity for homeowners in Canada who are age 55 and older. It is popular because it is equity based lending. If you are the right age and have enough equity in your home you can obtain this Canada reverse mortgage – and can access up to $500,000 tax-free with no payments required on the loan until the home is sold or owners move out. The minimum loan is $25,000.
The amount available to the homeowners is based on the appraised value of the home, the age and gender of the homeowners, marital status, property type, and location. Reverse Mortgages are available in almost all areas across Canada, on most types of homes such as condos, town houses and houses. Farms may also be eligible. If you live in a populated area you will be able to get one!
The proceeds from the reverse mortgage are received as a cash lump sum. Homeowners are initially approved for a maximum sum, but may choose to receive a lesser amount initially and then request subsequent advances on the remaining available proceeds. Being approved for a higher amounts makes sense cost wise as there is no additional expense to be approved for the maximum amount. The advantage being that, anytime in the future, seniors can just make a request for more cash. Since they are already pre-approved they can be advanced more funds – again at the $20,000 minimum Canada reverse mortgage amount.
As part of a well-balanced financial plan, we can add new flexibility to a senior’s finances and is an effective way to:
Create new and tax-efficient sources of income;
Preserve existing investments for continued growth and income generation opportunities;
Provide even better investment returns that you may be experiencing currently.
Reduce personal income tax;
Provide cash resources to fund a large project, purchase a vacation property, fund medical home care, start a new business or hobby, make cash gifts to children and grandchildren, and more.
Unique Unbiased Advice
Our reverse mortgage expert Gregory Stanley CFP CSEC is a sought after public speaker to financial advisors across Canada. Mr. Stanley is both a Certified Financial Planner and a mortgage broker. He gives talks primarily in Canada, but also he speaks in Las Vegas – where hundreds of top Canadian financial advisors come listen to him speak about Reverse Mortgages and ‘investment’ mortgages (where investors earn predictable returns in short term investments) in general. He is considered an expert in his field. With 30 years experience behind him … he just knows. From his speaking engagements in the Cities of Victoria, Vancouver, Calgary, Edmonton, Ottawa and Toronto, among other areas, Mr. Gregory Stanley meets other top quality and successful financial advisors. Over the years, relationships have been developed to the point where if a senior writes to Mr. Stanley (www.mortgageconsultant.com ) and asks for way to create better cashflow or improve income Mr. Stanley can refer and recommend a good advisor.
The proceeds or the cash lump sum from a Canada reverse mortgage can be directed to a top financial advisor in your area that is recommended by Greg Stanley. The reverse mortgage gives you the cash you need … but the advice on how to use it properly … how to create a good income … comes from good advice. CanadaReverseMortgage.com would be happy to refer you to such a top and skilled advisor that Mr. Stanley trust’s in giving advice to seniors.
Finally, as mortgage brokers, we make sure that a reverse mortgage is the right choice for you. That is why it is important to request an information package from us directly. We will ensure that you get the right mortgage for your own unique situation. If you have not already done so we strongly suggest that you obtain your free – no obligation – information package about the 7 secrets about reverse mortgages in Canada.
Right for You?
You should ONLY a reverse mortgage if you plan to be in it for at least 3 or more years. This is because prior to 3 years you would be charged a penalty to get out early. At 3 years ior more there is NO charged imposed by the lender to leave. Most people keep a reverse mortgage for at least 10 years. So if you like where you live and plan to be there for some time then you will enjoy ‘nice’ rate – at the same time not needing to worry about making any monthly mortgage payments.
Unique Protections and Guarantees Alone among home equity borrowing options, a Reverse Mortgage offers these unique protections and guarantees:
No repayment is required while the homeowners continue living in the home.
The homeowners have complete freedom to sell or move at any time. And if they do move it may be possible to ‘port’ or transfer all or part of the Canada reverse mortgage to the new home.
Homeowners will never be asked to move or sell to repay the loan. As with other mortgages, up-to-date payment of property taxes, fire insurance, condominium/ maintenance fees, and maintenance of the property is required.
The loan amount to be repaid is guaranteed not to exceed the fair market value of the home at the time it is sold, protecting the balance of the senior’s estate.
A Reverse Mortgage may also assist seniors in their tax-savings strategies. Proceeds from the reverse mortgage are received tax-free and are not added to taxable income. When the proceeds are used to purchase new investments, the interest expense of the loan may be used to offset tax on the new investment income and reduce the overall tax payable.
Terms of Repayment
Because no payments are required on the reverse mortgage while the homeowners are living in their home, interest is added to the outstanding balance and is compounded semi-annually. The full amount only becomes due upon the death of the last surviving spouse, when the home is sold, or when the last surviving spouse moves out. The homeowner may leave the home for up to 12 months before the loan in considered payable, accommodating situations where a senior requires institutionalized medical/nursing home care for a short term.
All or a portion of the accrued interest may be paid once every calendar year, which can reduce the accumulation of interest on the outstanding balance and help preserve greater equity in the home. The minimum interest payment (to pay down accrued interest) is one thousand dollars. So, if you look in your checking account each December and have $1000 or more sitting there, you can always send it in to pay towards your interest costs – it is something you can do every year …. but you don’t have to. That is the flexibility of it all.
The reverse mortgage may be repaid in full at any time. If payment is made within 36 months of the advance of funds, a pre-payment amount will apply. An interest rate differential payment may also be required. This will be waived if the reverse mortgage is repaid as a result of the death of the last surviving spouse or reduced if the reverse mortgage is repaid as a result of the long-term medical care institutionalization of the last surviving spouse. After 36 months there is absolutely no prepayment penalties. Again, Gregory Stanley won’t put you into a reverse mortgage if you can’t see yourself living in your home for at least 3 years.
As mortgage brokers first and foremost we make sure that a reverse mortgage makes sense in your situation. We take a serious commitment to all people when we give advice. It is the core of the way the we do business.
At every stage of our relationship with clients, we work with a lender to make sure that the senior is fully-informed and comfortable with the decision they are making. Borrowers are encouraged to involve their family and their personal financial advisor. Gregory Stanley will be happy to speak to your children or your financial advisor.
In fact, no reverse mortgage are only placed with a borrower obtaining independent legal advice. You would have an independent legal review of your mortgage contract. We can provide you with a list of lawyers who are familiar about reverse mortgages.
If we believe that a reverse mortgage is not in the best interests of a client, or that the senior is being pressured by outside influences, we will discuss that situation frankly and, if necessary, decline to proceed. We always want you to make the best decision ever.