Equity release–let your home start taking financial care of you!

House-rich, Cash-poor : How to Turn Things Around

From Chris Richards - November 22, 2023

Dear Homeowner:

As an older Canadian, are you searching for ways to pay off your debts, deal with a soaring cost of living, or otherwise make your limited financial resources stretch further?

The premise of this page is that you have spent your entire life working to pay off your mortgage and generate equity. The real estate market has been rising for decades and has created vast wealth for homeowners, but that wealth is trapped in your home!  Now, perhaps it might be time to think about how to get some of that home equity working to improve your life using what is called an Equity Release Reverse Mortgage Program. 

Equity is the difference between the value of your home and what you owe on it. The trick is to get the equity working for you now so you don’t have to stress any longer over your retirement finances - to set you free!

Almost 50% of senior households are under financial stress.

Are you? Please believe me - you are not alone! Almost 50% of senior households (65+) in Canada are still carrying a median debt load of $25,000, and 15% of these same households still have average mortgage debt of $110,000.

If so, please read on because you may have a wonderful opportunity to turn things around. To start, I strongly encourage that you begin to talk with someone about your money situation, to educate yourself. Does any of the following resonate?

• Does it scare you that you are still in debt at your age?
• Are you waking up at night worrying about how to make payments on your bills?
• When was the last time you went out for dinner or drinks with your spouse or friends?
• Do you have an upcoming repair or a health expense that you have no idea how to pay for?
• Have your retirement investments underperformed? 
• Are you still working at your age because you perceive no other options?
• Are you scared or unsure how to solve these problems?
• Are you embarrassed about all this?
• How do you climb out of the debt hole without returning to the workforce or asking your adult children to help you out?

We may be able to help if…

1. You own your own home, and it’s your primary residence, 
2. Your home is worth at least $200,000, and 
3. You and your spouse (if you have one) are 55 years of age or older.

My name is Chris Richards. I have been married 35 years. I live in Greater Calgary and I am a licensed mortgage broker. Please find a pen and paper and write my telephone number down so that you can reach me after you have thought about this article further. It is 1.888.540.1715 ext 2 and you can call me toll-free from anywhere in Canada.

Welcome to my page, where hopefully I can generate some life improvement options for you! 

Inside this webpage you will learn:

• How to get rid of your monthly mortgage payment.
• How to pay off those lingering loans and credit cards.
• How to come up with the cash to pay your property taxes
• What financing options are available to you and which are not
• How to finance home improvements
• How to age-in-home
• How to actually retire if you are still reluctantly working
• How to get a grip on your finances.
• How to create or increase your pension or investment income streams

Thousands of Canadian homeowners have taken the path in this article to a better future with a lot less financial stress.

Seniors talk of two of their greatest fears, which are:

1. Falling, and
2. Running out of money.

Now you can use your home equity to make both your house safer and to improve your finances. What are you waiting for?

I'm happy to help if I can. I specialize in helping senior homeowners access home equity through a process called equity release reverse mortgage. There are two Government of Canada approved reverse mortgage providers. CHIP by the Home Equity Bank is the most widely known, but there are other options. Yes, you do have options and that is a good thing!  I can streamline the process for you through what is known as the mortgage broker channel.

LUMP-SUM EXAMPLE 

Here’s an example from Bob & Patty. When they first came to me, Bob was 65 years old and still working as a plumber. His knees were killing him. Patty, his wife, was working part-time as a nurse at 61, and still putting in 30+ hours per week (her feet were killing her!). They still had 10 years remaining amortization on their $127,000 mortgage (~$1200/mo), a $450 /mo car payment for another 3 years, and $18,000 in credit card and line of credit debt where they were only able to make the minimum payment in most months, given their high utility, fuel and property tax expenses. Bob had about $1200/mo in OAS & CPP income, and Patty would access the same when she gets to 65 plus her nurse's pension  Their home value had soared to almost $700,000 in recent years, but that equity windfall was trapped until they sold the home .... or so they thought.

They checked all the initial equity release reverse mortgage qualification boxes.

They owned their own home

They lived in the home full-time (primary residence)

The home was worth at least $200,000, and 

Both Bob & Patty older than 55 years of age.

Based on their information, I was able to deliver to them the following news... 

"You could be eligible to borrow a maximum of $238,000"

They needed much less than that to clear up their debts. In fact they needed about $170,000 including equity release mortgage set-up fees. And when they were done, they no longer had a $1200/mo mortgage payment, no more $450/mo car loan, no more $700/mo trying to clear the credit card and LOC debts over the next 3 years.  They now had improved their monthly cash flow by $2350!  Bob was finally able to quit his job, Patty backed off on her hours to casual, and her pay cheque now became a "play-cheque."

The information this page is laid out to

• Save time - we can quickly help you access and assess your options
• Encourage you to take action now - click here!
• One-stop access - let us shop the market for you and present options
• Independent legal advice - we will encourage and require it
• Help you to reset your finances from the comfort of your own home
• Paint a picture of what life could be be like without financial stress!

Here is How an Equity Release Mortgage Works

An equity release / reverse mortgage can make a lot of sense …

• For those who have debts to pay off, especially when that debt is causing stress,
• If you have specific goals for the money, such as a necessary home improvement, to travel more, or perhaps to help a family member,
• If you have been burdened with unplanned expenses, such as car or roof replacement,
• If your home is falling into disrepair,
• Or perhaps you are pinching pennies so hard for just the basics like food and utility of expenses, and would simply like some relief.

How does it work?

• An equity release reverse mortgage is a loan that allows you to access the equity in your home without having to sell it.
• The loan is secured against the value of your home.
• Unlike a traditional mortgage, you do not have to make any mortgage payments as long as you are living in the home; the interest simply accrues.
• When you move out or the home is sold, the loan plus accrued interest must be repaid from the sales proceeds. You will never owe more than your house is worth.
• The amount of home equity that you can access is formula-driven based on the value of your home, type of home, and your ages.
• You get to stay in the home THAT YOU LOVE for as long as you want.
• Your credit rating will not prevent you from getting an approval!

All reverse mortgage lenders ask of you is that you keep your home insured and in good repair, and that you pay your property taxes on time! If that is a fair trade, then you can …

Access up to 59% of your home equity in tax-free cash!

Take the money upfront as a LUMP SUM or MONTHLY as you prefer (or a bit of both)!

Use the money how you want and never make a monthly payment!

When you move out, you’ll never owe more money than your house is worth.

It only takes a minute to find out how much money you can access - complete this simple equity release quote form and we'll help you determine your options and get the lowest reverse mortgage rate, which can save you thousands over time.

Let’s Talk About Finances 

All I can say is please DO NOT be afraid to talk about money, whether as an adult kid concerned about your aging parents’ finances or as a financially-worried parent with your adult kids irrespective of what they might think. Life is real!  If we care about people, at least we should ask or share. There are always options and there is no reason to be shy talking about money. We are here to help you start that conversation as well. 

If you would like to eliminate your debt for your life and live within your means you could start with the following::

1. Make a list of your required monthly living expenditures and all your monthly income sources, including any pensions, OAS, CPP, GIS benefits plus your RRSP and RRIF savings.
2. Make a list of all the balances owing you have on your credit cards, credit lines, loans, and mortgages, as well as the required monthly payments and interest rates.
3. Find a mortgage professional who will review your situation and advise you on all your equity release options.

Many people don’t have a financial planner or even someone they can call, but as a mortgage professional we are indeed planners and it doesn’t cost you anything to reach out nor is there any obligation to use our mortgage planning services. Our services are FREE (the lender will pay our brokerage a commission, that's how it works.)

We don't just provide a quick fix solution to your problems. We help map out a long term solution that puts you back in control of your financial future… and we’ll never be more than a phone call away. 

“Hey Chris, just wanted to let you know that we paid off the credit cards and the mortgage payment is no- longer as planned.  I just gave notice to quit my job and our pensions, CPP and OAS should be enough to live quite comfortably. Feels great - thanks! ”

Our clients are diverse and come to us from all backgrounds and walks of life…

They are plant operators, factory workers, construction workers, self-employed individuals, realtors, government employees, police officers, firefighters, nurses, managers, pilots, and yes, also bank employees and yes... EVEN financial planners!!

Why? Because now it’s time for a different view on real estate and debt management in retirement because life doesn't always go according to plan. At least you bought your house when you did, and if you play your cards right, you can...

Eliminate your monthly debt payments

Improve your cash flow so you can finally start enjoying retirement

Access the funds for that improvement project or any other financial goal

Stay in the home that you love

You can have me looking at your free quote request within as little as 20 minutes from now…

... and since we work fast, it’s possible you’ll see your finances drastically improve in under a month!

So Why Not Let Your Home Equity Take Care of You?

With an equity release reverse mortgage, you can use your home equity to take care of you! Today, people are living longer, more active lives. And even as they age, they want to stay where it’s most comfortable and perhaps safer – their family home.  And we all know, retirement and extended-care homes can struggle at the best of times, not to mention the ravaging they faced as Covid-19 gripped our nation.

Stay in your home!  Use some of your equity to  ....

• Get caught up on your bills and payments.
• Pay your health and wellness expenses, such as prescription drugs, massage and physio, private health premiums, travel insurance
• Pay for at-home care, such as personal care attendant, post-surgery care, 24-hour in-home care, medical alert monitoring.
• Keep up on your home maintenance, including housekeeping, grass and yard care, snow removal, repair & maintenance, security monitoring.
• Stay in your home longer and safely as you age with home improvement and mobility aids, such as grab rails, scooter, wheelchair or walker, walk-in-tub, accessible kitchen, or how about a stairlift? 

Here is How Our Process Works

• IT ALL STARTS with filling out an online quote form – this part takes about 2 minutes. All we need to know are your ages, estimated value of your home, postal code and town, and the type of home you have. There is also a space for you  to tell us about your situation, goals and objectives!
  
  
• YOU’LL receive a quick response from us – this is where we will provide an initial estimate of the equity that you can access and different options that you have for accessing that equity from available lenders. (This is where the broker represents you, not the bank!). 
  
  
• YOU’LL  decide which financing option best suits your current need and we will encourage you to talk these over with your family members or advisor. We’ll make the options straightforward for you, provide decision support information, and answer any questions you may have, including disclosure of all costs.

• YOU’LL  be invited to fill out a formal application form if you’d like to proceed with one of the options. We have online and paper forms available. As well as the application, you will be asked to provide certain documents, including confirmation of property insurance, existing mortgage balance, proof of property tax payment, valid identification, and proof that you are currently living in the home.
  
  
• YOU’LL  need to allow a Home Appraiser to visit your home and confirm the value of your property for the lender. Either we or the lender will coordinate that. Once the appraisal is complete, the mortgage amount is recalculated based on the actual appraisal value versus the estimate you provided earlier. The lender then issues a formal approval in as little as 2 days.
  
  
• YOU’LL  review the formal loan approval or “commitment letter'' in the comfort of your home. You call or email us with any questions. Then simply deliver your signed acceptance back so that the lender can begin to prepare the mortgage paperwork to send to your lawyer.

• YOU’LL  need to visit with your lawyer to review the mortgage paperwork and to obtain independent legal advice with no pressure from anyone.  

• YOUR LAWYER receives funding and pays off your debt in full, and...

• YOUR FINANCIAL STRESSES ARE OVER, AGE WITH DIGNITY.

Here is what others said about Chris's services...

Would You Like To Be Payment-Free (and Stress-Free) Starting Next Month?

We may have up to 3 financing options for you to choose from. Two will utilize the available equity release reverse mortgage lenders, and the other requires you have to some income to help qualify (but you can access up to 65% or your home equity and at lower rates).

We will present you with all of your financing options and recommend the one that makes the most sense to us but it will be you who decides which one fits your current needs.

EXAMPLE: If your home value is $650,000 and your current mortgage balance is $150,000 then your home equity is $500,000.

You could tap into some of your home equity and pay off all of your credit cards and loans to make your life easier.

Now, let’s say you also owe $10,000 on your credit credit line, $12,000 on credit cards, $25,000 on a car loan, and $100,000 on your mortgage.

In total you are spending $1,535 of your monthly income (pension, OAS, CPP, investments, etc.) on debt payments that could take decades to go away, while you could eliminate all of these payments using one of our equity release programs, and use the spare cash flow to make your life a lot easier.

Would You Like to Have a Income Supplement Starting Next Month?

What would you do with extra cash flow?

Would you travel more?

Help a loved-one?

Quit your part-time job, or better yet,

Retire early?

The options are endless.

Allow yourself to consider the possibilities... And when you finally allow yourself to take action, the nice-to-haves can become within your means.  You've already made an amazing investment in your house, why not get that investment working harder for you to fund the life you actually want, instead of wishing and pinching the pennies. Liberate yourself!

Even if you took a lump-sum amount to take care of the immediate debts as described above, you could also take a regular monthly or quarterly amount (or on an as-needed basis) to augment your lifestyle. 

INCOME SUPPLEMENT EXAMPLE

Gary & Leona Sobczak saved what they could for retirement including some money in TFSAs & RRSPs, which they would begin to draw on more heavily once the stock market picked back up. They both had OAS and CPP income totaling about $2500/mo and were pinching pennies were they could. They thought that this was as good as it would get. Yet, over half their net worth was tied up ( I call it trapped) in their home and they did not want to move.  I explained to them that they could use their home as a financial tool to help supplement or augment their other monthly retirement income sources. This surprised them as they had always held the traditional view that real estate is simply an "estate asset" (something you pass down to your kids in your Will). 

Equity release programs can be setup to advance you as little as $500/month or $1500/quarter and up from there.  What would you do with extra cash flow?  Would it relieve some financial stress?

Why Use a Certified Reverse Mortgage Specialist?

There are many benefits of applying for your equity release reverse mortgage with us…

The first one which comes to mind is your instant access to all federally-approved reverse mortgage lenders, their products and rates with one single quote request.

Your regular bank (or any other retail bank for that matter) does not offer these products.

There is more than one provider of equity release reverse mortgages, so even if you go direct you are applying for their products only. How do you compare one to the other? How do you get the lowest interest rate?  How do you know about specials and promotions?

Example of a recent reverse mortgage lender promotion...

There is nothing wrong with shopping around for your own mortgage, BUT why? We are experts and will do it for you. We'll help you access and compare the offerings, and there is no obligation or cost to use our services (the lender pays our brokerage fee if you proceed, not you). Are there other options besides a reverse mortgage that are worth considering?

If you decide to apply for a mortgage (but first learn your options), we will perform only one inquiry to your credit file and attach your credit report to your mortgage application.

We then submit your application to one lender at a time, starting with the one who has the highest probability of accepting your application quickly, at the best rates and terms for your situation.

This way, you’ll know that your application could be approved quickly and at BEST terms available.

There is NO need for office visits, simply request a free estimate, and we’ll get started on it right away.

Our goal is to provide you with the best solution for your current situation.

This kind of reverse mortgage should have:

Next Steps

Take a moment to review your monthly budget to discover how much you are really spending each month on all your living expenses, bills, property taxes, utilities, etc. and then compare them to your actual income sources, such as CPP & OAS, RIFs, pensions, etc.

If you have nothing left over or your quality of life is not where you want it to be, then consider these solutions…

• Sell your home to downsize – consider the cost of real estate commissions and moving, and now where to live?
• Get a part-time job – not so easy to compete with the younger folks!
• Triple your credit card payments - not easy if you are already struggling to make ends meet!
• OR... LET US HELP!!

And let’s not forget that when you take advantage of our services, there are…

• NO application fees!
• NO initial credit checks!
• NO multiple credit inquiries!
• NO office visits!
• NO time consuming appointments!
• NO surprises!

START NOW, TAKE ACTION TODAY

If you want to take advantage of our proven mortgage services - LET'S GET STARTED!

REMEMBER: It costs you NOTHING to get started and most of all there are NO obligations. If you are not satisfied with our solutions, then you can cancel at any time!

Sincerely,

Chris Richards,
Licensed Mortgage Broker with
Quantus Mortgage Solutions

P.S. That's all it's to it... no running around... no time consuming appointments... no office visits... and lender competition for your business is GUARANTEED! We know you have many questions for us and we will take time to answer all of them.