A Reverse Mortgage is a financial quality of life solution that many seniors will not even consider. Former Federal independent MP, Garth Turner, once described Reverse mortgages as " The thing you would do if you hate your children". I could not disagree more. I have spoken with a few seniors who would have been perfect for the reverse mortgage program, but their negative responses were varied. One said that they want to leave something in their will for their children. One wanted to do it and even agreed to the reasoning, but was very fearful of change and never made it to a formal agreement. I found that there are serious misunderstandings about what a reverse mortgage is and how much it costs. It also breaks my heart to see a solution that could be so beneficial to the quality of life of a senior be outright dismissed because of traditional stigmas. Many consider that it took 40 years to pay off a mortgage and they would prefer sell it if they couldn't afford to live there anymore.
Then what... seniors home, rent, landlords, loss of independence, loss of familiarity, loss of your long time neighbours, loss of pets, loss of the traditional family home. What if you had many years of independence remaining? These changes could cause high anxiety for anybody, especially a senior.
Reverse Mortgages are a relatively new idea in the Canadian market. They have been available for over 27 years and quietly are proud of the fact that they honoured every promise they made to seniors in their history. If Reverse Mortgage seniors were to be surveyed, you would see a completely different picture of a terrific program that has allowed them to enjoy a better quality of their golden years.
It is true that a reverse mortgage is not a financial tool for every senior and there may be better options that need to be considered. If it is the right solution then it should be embraced as a natural progression in the retirement planning cycle. Adult children of a reverse mortgage customer normally endorse the choice, because they themselves see the benefit of an independent parent.
Still not sure, check out the website for CHIP www.chip.ca and read the success stories.
Mike Toporowsky AMP Mortgage Broker Real Mortgage Solutions
