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SOURCE HomEquity Bank
For some, a reverse mortgage is often the only solution to financial crises
TORONTO, May 26, 2014 /CNW/ - The lack of pension reform combined with seniors living longer than ever is leading to a lack of finances in old age - a troubling issue that needs to be discussed in families across the country.
That's according to HomEquity Bank experts, provider of the CHIP reverse mortgage.
"Canadian seniors want to remain in their homes as they age. 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," explained HomEquity Bank VP National Sales, Jeff Spencer.
Meeting with Canadian seniors on a regular basis, Mr. Spencer knows first-hand the financial issues many face as their retirement progresses. However, property values have dramatically increased in many Canadian cities and tapping into the home's equity to subsidize retirement is going to play a more prominent role, he explained.
According to CARP:
Canadian senior Jim Burton, 73, is a Chartered Accountant who seriously considered selling the family home, where he and his wife lived for 42 years, before deciding on a CHIP reverse mortgage. The catalyst? A real estate deal fell through due to the death of a partner "which significantly hurt my retirement plans. This was a big part of my pension plan process - I was going to be short about a million dollars without this project."
The CHIP reverse mortgage helped Jim and his wife remain in the family home and "it was one of the simplest financial transactions I've ever done."
"We bought our house forever - and we haven't got to forever yet," he added.
How the CHIP reverse mortgage works:
"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. We want to educate Canadians on other options, including the reverse mortgage," added Mr. Spencer.
Dispelling a major misconception around CHIP reverse mortgages, he noted: "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% of the equity left in their homes."
About HomEquity Bank
HomEquity Bank is a Schedule 1 Canadian Bank offering the CHIP reverse mortgage solution www.chip.ca. It was founded 28 years ago as an annuity based solution addressing the financial needs of Canadians who want to access the equity of their top asset - their home.
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