Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Notify me of new replies via email
Mortgage Broker News | 14 Jan 2015, 01:36 PM Agree 0
Reverse mortgages are gaining in popularity across the country, as evidenced by one major lender’s record originations in 2014.
  • AnthonyC. | 14 Jan 2015, 02:28 PM Agree 0
    Congradulations to HomeEquity Bank!

    Great staff, great service and an excellent financing option for its demographic.

    I have promoted it in my mortgage origination business and will continue to do so.
  • Barb | 14 Jan 2015, 02:49 PM Agree 0
    This product has come a long way and is a helpful alternative to those seniors who no longer qualify for a line of credit. Congrats to Home Equity Bank!
  • Omer Quenneville | 14 Jan 2015, 03:10 PM Agree 0
    Great product of last resort after all other options have been considered.
  • Robbie Ryan | 14 Jan 2015, 03:42 PM Agree 0
    This is sad new indeed.
  • Mark Nelson | 14 Jan 2015, 05:12 PM Agree 0
    If anyone gets a reverse mortgage they haven't been advised properly.
  • Ottawa Broker | 14 Jan 2015, 06:45 PM Agree 0

    There are numerous reasons for a client to obtain a reverse mortgage and for Mark Nelson and Robbie Ryan to offer their negative comments shows how short sighted they are. So if a client wishes to live in their home their remaining years and have no income to live on, you say it is better to sell their home and move into a retirement home?
    You shouldn't pass judgement on people that obtain reverse mortgages, you don't why they did or what their curcumstances are. I have been a mortgage broker for over 20 years and the comments I see on this site have really made me wonder about the integrity of the mortgage brokers, realtors and financial advisors that make comments on this site. Some clients take certain products because they want to or they have no other options, stop being so judgementalm and get off your high horse.
  • Robbie Ryan | 14 Jan 2015, 07:06 PM Agree 0
    In total agreement with Mark. Far cheaper ways to access money than CHIP with some careful planning before retirement age. Far cheaper to self direct a reverse mortgage without eroding more equity than necessary.
  • Robbie Ryan | 14 Jan 2015, 07:06 PM Agree 0
    In total agreement with Mark. Far cheaper ways to access money than CHIP with some careful planning before retirement age. Far cheaper to self direct a reverse mortgage without eroding more equity than necessary.
  • Robbie Ryan | 14 Jan 2015, 07:08 PM Agree 0
    No such thing as no income to live on in Canada.
  • Anthony C. | 14 Jan 2015, 07:47 PM Agree 0
    @ Ottawa Broker

    Thanks for saying what had to be said...its easy for others to say what people should be doing before retirement, but we are living in the real world, where not is all perfect and and not all are capable of having supplemental income past retirement, apart from the equity in their homes... an overall good product for those with no other available options. That we have such a plan in Canada is well received by those who have access to it.

    And on a final note, I find the people who complain the most about this product are the adult children of the retirees...guess they are seeing a portion of their inheritance going to waste...poor things:(
  • Micheal Kafenzakis | 14 Jan 2015, 07:51 PM Agree 0
    There are a variety of options for obtaining
    cash flow for seniors. Reverse mortgages are sometimes the only option for the client. Even though it is more expensive than a regular mortgage, it can still be less expensive than some other options. I have recommended this option to some of my clients when the regular mortgage is not an option for them.
  • Omer Quenneville | 14 Jan 2015, 11:28 PM Agree 0
    This makes me laugh. I bet I can figure out who places mortgages with TD..... Collateral mortgages are good too eh?
  • Robbie Ryan | 14 Jan 2015, 11:54 PM Agree 0
    Bet you can figure out who advertises 2.79% and places it with RMG. Just and fyi. First National, and ICICI are all accepting collateral charge transfers under the existing certificate. Better check with DUCA to see how they register before slamming TD. Tell me what other lender that will allow a gross up on Line 150 in order to avoid alt-a premiums.
  • Sylvia R | 15 Jan 2015, 09:29 AM Agree 0
    Seniors should qualify for a line of credit if qualify for a reverse mortgage. Anthony C. is only defending reverse mortgages because he is a mortgage agent. I do not believe seniors are being advised properly. Get a conventional mortgage instead of a reverse mortgage. How sad that seniors are being taken advantage of again.
  • Omer Quenneville | 15 Jan 2015, 10:50 AM Agree 0
    Agree with Sylvia... my opinion, reverse mortgage is good when you are on your death bed, have no family and don't want to leave your home. Even than, other options should be sought first.
  • Anthony C. | 15 Jan 2015, 12:21 PM Agree 0
    @ Sylvia R.

    Hi Sylvia...i'm getting the feeling you are not in the mortgage industry (if my assumption is incorrect, my apologies) and for that I can understand your comments, but not agree with them. Let me explain...

    The "reverse mortgage" doesn't need's an excellent alternative to a growing market segment that, due to limitations such as income, age/health or credit strength, may be hindered in their capacity to access monies via equity in a home. Remember, it's their equity, and they should be able to have unhindered access to a portion of it, rather than selling the home as their only alternative. Unfortunately for them, the banks are operating under more challenging lending guidelines these days and shutting their doors to equity take out products, en mass.

    Further, when "seniors" are discussing the CHIP plan, they are in fact being advised through full disclosure and with the blessing of their lawyers (at their choosing of course) as to the exact dollar amount the upfront costs & fees and balance outstanding at maturity are with this credit facility, in addition to risks and exit strategy for the lender, well in advance of executing such a financing request. The first face-to-face meeting and follow up meetings are conducted by a qualified HomeEquity Bank representative, with any and all family members attending, if requested by the borrower, in addition to their mortgage representative, when applicable.

    Additionally, a "Conventional Mortgage" by name, does not circumvent the debt servicing guidelines which for the most part, all lenders apply in their credit decision still must meet the minimum lending guidelines via income and credit.

    Conventional is a term which implies that the mortgage is not covered with default insurance, issued through either CMHC or the other two private insurers operating in Canada. It does not mean you have a green light and a right-by-design to get financing because you think you should get it.

    And if you think "seniors" cannot make a well informed decision, think again...seniors whom i've dealt with are, for the most part, active and robust persons who are capable to decide what is best for them, and pleased to be able to maintain a dignified and rewarding lifestyle well into their advanced years, by the access to their equity which a CHIP home income plan provides them. And please note, the plan is available to applicant(s) once they have reached 55 years of age....feeble at 55...? Not by a long shot.

    On a reverse note, were an applicant's capacity to reason, either by on-set dementia or some other mental or physical health related issue, it would be safe to assume that at this point they would have assigned a Power of Attorney for Personal Care and Property, to a qualified family member or personal advisor, as was the case on a recent CHIP deal on which I advised.... As a real life example and past client of mine, an elderly woman (in her late 70's) who chose to live at home, rather than a nursing facility, and who received a nominal pension (which by the way was not enough to cover her utilities, property taxes and food expenses) and who was in the care of her live-in and eldest daughter (also physically limited due to a degenerative disease) and who recently became a widow, after just recovering from a complicated hip surgery, needed a financing solution which her bank relationship could not provide. She and her spouse proudly raised 4 children in their home and without any retirement savings (because lets face it, life is expensive in Canada), other than a free & clear home, and saddled with mounting therapy and medical bills (not to mention food, clothing, and other living expenses which don't stop because you are a senior) in addition to the home with a value close to $700K and which required a new furnace, roof, windows and a wheelchair access bathroom, the CHIP plan was the best solution. She accessed $150K, and in combination with her pension, she has no financial worries for the next decade. AT the end of the 5 year term, she will have owed just north of $185K... Her adult children will deal with the estate issue once this now happy and loving woman passes on, and if she lives to 100, God bless and we can do it again for her when that time comes.

    The above scenario is occurring daily throughout Canada and many seniors are facing these real life issues, with limited options available to them.

    My position (and a valid one at that) is that you, Robbie, Omer, Mark and others who share your quick-to-post and unsubstantiated position should think twice and speak only once.
  • John Smith | 15 Jan 2015, 12:26 PM Agree 0
    Mortgages, investments, and insurance are not one size fits all, if they were we would not need mortgage, investment, or insurance agents. We should all be happy that there is a mortgage lender in Canada wiling to provide such a product, and there a more products that consumers can choose from. It is not easy to acquire investors for an investment with an uncertain investment horizon. This uncertainty deservers a premium, if someone asked me to lend them money without a defined payback period, I would laugh.

    Yes, borrowers should have planned better for their retirement, but life has many unexpected events that affect our long term strategy.

    Slyvia, reverse mortgages have no income or credit requirements. Credit lines have income and credit requirement, as well as they are on demand. Meaning that they can be called at anytime. You seem to think borrowers are lost mules without intelligence. If anything, borrowers receive more advice with a reverse mortgage, than a regular mortgage. If you look at the complaints regarding pre-payment policies, we all know quite well that at a bank branch the advisors have a tendency to wiz through all the documents that you are signing. Every borrower that receives a reverse mortgage is required to have independent legal advice. That is far from being taken advantage of. People need to take responsibility for the decisions they make.
  • Robbie Ryan | 15 Jan 2015, 12:40 PM Agree 0
    I respect what has been said in the last two posts and give consideration to using CHIP in my offerings. Thank you from a humbled broker.
  • Anthony C. | 15 Jan 2015, 12:45 PM Agree 0
    @ Robbie Ryan

    Good on you Robbie...there are clients out there who need your support and guidance when in need of this product.

    Jason Durham is my BDM at HomeEquity Bank...he is a knowledgeable advisor and works the the G.T.A. in Ontario...he is a pleasure to work with and can be reached at

  • Robbie Ryan | 15 Jan 2015, 12:50 PM Agree 0
    I'm in Alberta Anthony and we have Bob Dubas who is passionate about the product and has limitless energy when promoting it.
  • Anthony C. | 15 Jan 2015, 01:43 PM Agree 0
    I had a feeling you contacted or knew them directly...

    Thanks for sharing your contact and good fortune to you and yours in 2015.
  • Robbie Ryan | 15 Jan 2015, 01:47 PM Agree 0
    Yes. And thank you for the good wishes Anthony.To you and yours as well.
  • Terry Lynch | 15 Jan 2015, 03:30 PM Agree 0
    Yes I too hear negative comments about Reverse Mortgages and I am sure they are in large part initiated by the children who worry their inheritance may be eroded!
    Consider the plight of a widowed wife, now that the husband's substantial pension has now been decimated at his death. She has been traumatized by her loss, and now may have to sell a home that she has lived in for decades, uprooting from her neighbourhood, from old friends and memories. The Reverse Mortgage will enable her to stay in the environment she is comfortable in, and which she can now continue to afford until health reasons force a change. I have seen a lot of cases where the children feel that "Sure, just put old mum in a home - she'll be fine!!" with no more thought or consideration than that. I feel that Reverse Mortgages are an ideal solution to enabling the continuation of a desired lifestyle and naysayers should not be so quick to judge something they know little about!
  • Ron Butler | 15 Jan 2015, 03:49 PM Agree 0
    The interest rates at CHIP have definitely come down and if the home owner has little income CHIP may well be the only viable option but a HELOC at minimum payment used as a "sinking fund" is a often a cheaper more flexible option BUT not all seniors will qualify so I am being a hater.
  • Tommy | 16 Jan 2015, 12:33 PM Agree 0
    Ron Butler, I'm with you. Consider all other options first.
    Canadians with 0 income is total nonscence!.
  • RW | 19 Jan 2015, 04:58 PM Agree 0
    I agree with Ron as well, HELOC at interest only with amount set aside for payments is a better option if available. I just don't like the idea of interest compounding on itself. Just my opinion but I realize this is not always an option and with growing population of seniors, CHIP use will continue to grow.
Post a reply