Writing for Dominion Mortgage Centers, Yvonne Ziomecki for HomEquity Bank is committed to clarifying several commonly accepted views regarding reverse mortgages in Canada.
Among the most persistent so-called misconceptions, Ziomecki said, is the myth that sellers lose ownership of their homes to institutions.
“This statement is false,” Ziomecki stressed. “Like any other mortgage, your home is used to secure the loan, which means the HomEquity Bank is registered as a standard charge on the title.”
“You, the customer, DO NOT transfer ownership of your home to us. In fact, once it’s time to pay off the mortgage, you or your heirs have the choice of how to settle the loan as you wish. Selling the house is the most common option, but it is not mandatory, ”added the senior vice president of HomEquity Bank.
In addition, conservative lending practices play a major role in protecting consumers, especially those nearing retirement.
“We remind clients that they can get up to 55% of the value of their home on a reverse mortgage. Of course, this amount depends on the age of the borrowers, their type of property and the location of their house, ”Ziomecki said. “But generally speaking, the younger the borrower, the less eligible they will be and the older the borrower, the more eligible they will be. This is because we want to make sure that the borrowers’ reverse mortgage does not exceed the value of their home. “
Here you’ll find Ziomecki’s extended explanation of how the DLC Loan works.
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