Writing for Dominion Lending Centres
, Yvonne Ziomecki for HomEquity
Bank has set out to clarify several commonly accepted views surrounding reverse mortgages in Canada.
Among the most persistent of the so-called misconceptions, Ziomecki said, is the myth of sellers losing ownership of their homes to institutions.
“This statement is false,” Ziomecki emphasized. “Just like with any other mortgage, your home is used to secure the loan, which means that HomEquity
Bank is registered as a standard charge on title.”
“You, as a customer DO NOT transfer ownership of your home to us. In fact, once it’s time to pay back the mortgage you or your heirs have the choice to settle the loan however you or they want. Selling the home is the most common option, but it is not mandatory,” the HomEquity
Bank senior vice president added.
Also, conservative lending practices play a major part in protecting consumers, especially for those approaching retirement.
“We remind the customers that they can get up to 55% of the value of their home in a reverse mortgage loan. Of course, this amount does depend on the borrower(s) age, their property type as well as the location of their home,” Ziomecki outlined. “But as a rule of thumb, the younger the borrower is, the less they will qualify for and the older the borrower is, the more they will qualify for. This is because we want to make sure that the borrowers reverse mortgage loan doesn’t exceed the value of their home.”
Ziomecki’s expanded explanation of how the DLC
loan works can be found here
Reverse mortgage guide for consumers launched