4 Reverse Mortgage Myths Defeated

Turn your equity into cash

A reverse mortgage allows you to turn the equity of your home into cash.

Money when you need it

Receive your money the way that works best for you. One-time lump sum or monthly payments.

Tax-free source of income

Increase your income without impacting your Old-Age Security (OAS) or Guaranteed Income Supplement (GIS).

4-reverse-mortgage-myths-defeatedReverse mortgages have come a long way. They have evolved from a needs-based product to a solution that many financial planners recommend as an important component of a comprehensive retirement plan.

Unfortunately, there are still many reverse mortgage myths out there. Below, I tackle 4 common reverse mortgage myths that are separated from the facts.

Reverse Mortgage Myths #1

  • Myth: The bank owns the home.
  • Fact: You always maintain title ownership and control of your home, and you have the freedom to decide when and if you’d like to move or sell.

Reverse Mortgage Myths #2

  • Myth: You will owe more than your home is worth.
  • Fact: Clients can qualify for up to 55% of the appraised value of the home, 33% on average. Due to HomeEquity Bank’s conservative lending practices, you can be confident that there will be equity left in the home when the loan is repaid. In fact, over 99% of HomeEquity Bank’s clients have equity remaining in the home when the loan is repaid.

Reverse Mortgage Myths #3

  • Myth: A reverse mortgage is a solution of last resort.
  • Fact: Many financial professionals recommend a reverse mortgage because it’s a great way to provide financial flexibility. Since it’s tax-free money, it allows retirement savings to last longer.

Reverse Mortgage Myths #4

  • Myth: You cannot get a reverse mortgage if you have an existing mortgage.
  • Fact: Many of HomeEquity Bank’s clients use a reverse mortgage to pay off their existing mortgage and other debts, freeing up cash flow for you to use as you wish. How great would it feel to be free of regular mortgage payments?

If this topic interests you, check out these 6 crazy claims on why reverse mortgages are bad.

You’ve paid into your home, now let your home pay you back to enjoy the years ahead.

This site provides further information and you can obtain a Free e-booklet on the Reverse Mortgage Advantage.

You can also call me direct at 250-861-8758

Neil “Mortgage-Man” McJannet

Neil was born and raised in Manitoba, Canada and as a result, is hardy in nature and does not give up until a deal is done. After graduating from Dakota Collegiate in Winnipeg in the mid 60’s he went to work at the TD Bank where he spent 28 years, with the last 10 years in their mortgage department in Toronto.