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.
“After 28 years -- and through one of the worst financial crises we’ve seen in Canada -- in most cases at the time of sale our clients have an average of 50 per cent of the equity left in their homes,” Jeff Spencer, VP of National Sales for HomEquity
Bank says in an official release.
According to CARP, a national not-for-profit organization committed to a “new vision of aging for Canada,” 12 million working Canadians (two-thirds of the workforce) do not have workplace pension plans and RRSPs have “not been the answer” to retirement security.
“Canadian seniors want to remain in their homes as they age,” Spencer said. “However, there are many that could lose their homes because they haven’t saved enough for retirement, some will be forced out due to a lack of information on options and many of them have the answer in front of them and don’t know it.”
Spencer believes the solution is a reverse mortgage, such as the CHIP reverse mortgage his HomeEquity Bank offers.
“Many baby boomers have not saved enough money for retirement. Without jobs and income, many face dire financial worries. In many cases, ‘sell the home’ is a knee jerk reaction,” Spencer said. “We want to educate Canadians on other options, including the reverse mortgage.”