Neil McJannet
Your Mortgage Agent For Life! - 095309
Tel: 250-861-8758
This article is based on reverse mortgages with HomeEquity Bank
HomeEquity Bank’s suite of reverse mortgage products helps Canadians 55+ live the retirement of their dreams. Whether your dreams are practical - renovations, clearing existing debts, or the opportunity to age in place - or more adventurous – travelling with friends or dining out - there’s a reverse mortgage product to make those dreams come true. But an increasingly common reason why you may need the flexibility of a reverse mortgage is to help those closest to you home and your heart - your immediate or extended family.
The situation
Katrina Liu was proud when her daughter Michelle bought her first home last year; happy her child achieved one of life’s adulthood milestones. However, when the COVID-19 pandemic struck, Michelle’s job was impacted. Because of her sudden unemployment, her mortgage provider was unable to provide many options to help her situation.
Though Liu wanted to support her daughter financially during her time of need, her options were also limited. Single and in her late 60s, Liu didn’t qualify for traditional financing because of her income. Thinking only of her daughter’s hardship, Liu considered drawing from her investment portfolio or dipping into her monthly cash flow to help.
Unfortunately, the plight of Liu’s daughter and the stress Liu felt as a result is not an uncommon situation. In a time of ongoing uncertainty due to the ebbs and flows of the pandemic, there are an increasing number of older Canadians worrying about the financial wellbeing of their adult children whose livelihoods are being negatively impacted.
The solution
Fortunately, there was an option available to Liu that enabled her to help her daughter without cashing in investments or impacting her monthly income in any way: HomeEquity Bank’s CHIP Reverse Mortgage.
Liu’s house was valued at $945,000 and she was able to access up to 55% of that equity in tax-free cash. Liu decided to gift her daughter $150,000 as an early inheritance, enabling Michelle to pay her mortgage and support herself while looking for a new job. Between mortgage payments of $1,900 and other expenses of $1,700, Michelle needed a total of $3,600 per month to get by. The lump sum from her mother meant a savings cushion large enough to cover three-and-a-half years of expenses.
Though keeping her financial situation intact month-to-month was an important outcome for Liu, she’s mainly relieved she was able to help her daughter in her time of need.
“Knowing that my daughter can continue paying her mortgage while she looks for a job has given me huge peace of mind,” Liu said.
If you have any other questions with regard to helping family or would just like to discuss a Reverse Mortgage in Canada please feel free to contact me @ neil@mortgageman.ca or by phone at 250-861-8758. I always say “Knowledge is Power” so do some further research on this product.
To help you in that regard, If you would like to get a free preview to - “Home Run, The Reverse Mortgage ADVANTAGE” click the link below:
https://www.chip.ca/wp-content/uploads/Home_Run_Book.pdf
Whether you are first-time buyer or an experienced buyer with excellent credit, The Mortgage Centre has access to the very best products and rates available across Canada. Give us a call… we think you’ll be pleasantly surprised!
Learn MoreThrough training and certification, we have a good understanding of available products, features, and rates. We are here to keep your mortgage moving forward with our Mortgage Market technology, we have electronic access to various major lenders in Canada, so you’re not tied to one lender or one type of mortgage.
Learn MoreWe understand that mortgages can be confusing and intimidating. To help demystify the process, The Mortgage Centre provides a glossary and a variety of free calculators to assist you in researching, and planning your mortgage.
Learn More