Even though Reverse Mortgages have been available in Canada for over twenty-five years there are still a lot of myths surrounding this mortgage product. With more and more of Canadians wealth tied up in the equity in their homes is it time to take a fresh look at some of these myths.
Myth #1 The Lender will own my home
This is not true. You retain the title to your home. A reverse mortgage is registered against the title to the home in the same way as a conventional mortgage or a home owner’s line of credit.
Myth # 2 The Lender will end up owning my home
This is false. According to HomEquity Bank the average homeowner has well over 50% of the value of their home left to enjoy after repaying their reverse mortgage.
Myth # 3 Your children will have to pay if the mortgage exceeds the value of the home
This is also false. In fact unlike a regular mortgage the reverse mortgage program guarantees that neither you or your family will ever owe more than the value of the home.
Myth # 4 You can be forced to sell your home
This is false. You maintain complete ownership of the home and under the terms of the reverse mortgage you can never be forced to sell your home.
Myth # 5 Most people are dissatisfied with their reverse mortgage
This is false. A recent survey by HomEquity Bank found that 94% of Reverse mortgage customers would recommend a reverse mortgage to others.
A reverse mortgage may not be for everyone but for anyone that is house rich, but cash poor it may be one way to stay in your own home and enjoy retirement on your own terms.
If you have any questions about reverse mortgages please call me at 604-961-2400.