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Mortgage Broker News | 27 May 2014, 09:44 AM Agree 0
Brokers have their criticisms of reverse mortgages but one of the leading providers of these mortgage products wants to dispel one of the most popular arguments.
  • Brian Lambert | 27 May 2014, 11:28 AM Agree 0
    I have not seen a reverse mortgage yet that I like. I have many seniors who I see and a lot are referred to me by their adult children. They need debt relief in almost all cases to be able to stay in their homes. Even today with low rates a client can get a $100K mtg at 3.19% or lower with a 30 yr Amm that is only $483.00 mth or $264 a mth interest only. Seniors want to protect their equity and the appreciation that home will bring in the future. They want to sell and down side when they are ready to do so, or may need the cash for a long term care facility. What ever, seniors are wanting to stay in their homes longer and are in better health today to enjoy retirement.
  • Angela Wong-Liao - Invis Inc | 27 May 2014, 02:47 PM Agree 0
    Reverse mortgage is not for everybody, it is really depending on each case scenario. I believe that reverse mortgage is a good product for seniors who want to stay in their homes, lots of equity but cash poor. They cannot have a decent standard of living just relying on their pension, CPP & OAS, reverse mortgage can offer an alternative for this group of seniors. The Homequity Income Advantage Program can be a good alternative as their maximum limit is 50% of equity of the house. If the house is free and clear, the senior is over 65, not sufficient income nor good credit rating to qualify for regular mortgage, reverse mortgage from Homequity Bank can solve this group of senior's cash flow challenge and still have 50% of the equity left for their families.
  • Keith | 28 May 2014, 12:05 PM Agree 0
    Angela has it right.
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