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About this episode of the I Love Edmonton Real Estate Podcast:
Elena Russell, BSc, PFP, FMA. joins me to talk about how reverse mortgage work in Edmonton real estate. Elena is a Business Development Manager with Home Equity Bank in the Edmonton South Region, and she shares her expertise while answering common questions and debunking misconceptions about reverse mortgage.
Listen in and enjoy!
[0:20] What is a reverse mortgage and how does it work?
In Canada, a Reverse Mortgage is first charge and you retain ownership. We can lend 55% to maximum value of property and it leaves equity in the home The minimum age to qualify is 55 and typical approval is 25%.
[2:12] Why get a reverse mortgage?
If you are struggling to make payments and working multiple jobs to keep up, it allows retirement, avoiding care facilities, and maintaining a certain lifestyle during market lows.
[5:05] What kind of demand are you currently seeing?
We are receiving more phone calls and engagement as people are at home due to the pandemic. People are discovering that if they lose their job they can’t qualify with traditional lenders.
[9:06] Can you choose to make payments with a reverse mortgage?
There are no requirements, but you can make interest payments and are allowed to make 10% payment towards the principle.
[10:40] What impact is the grey divorce rate having on your clientele?
There has certainly been an increase. You can utilize a reverse mortgage for spousal buyout.
[12:09] Are you able to put a reverse mortgage on a property you are buying?
You could potentially blanket both properties if you are keeping your home.
[14:33] What are some of the current reasons people are getting reverse mortgages?
Due to COVID-19, people are looking at financially helping out their children more.
[15:31] Are there situations when a reverse mortgage doesn’t make sense?
If the applicant is still working full time, able to make payments and qualifies for a home equity line of credit.
[16:40] Do you have any final comments?
Unlike in the US, in Canada you will not lose ownership of your home and you will never owe more than the property is worth.
Contact Elena Russell
Website: https://www.chipadvisor.ca/
Social: https://www.linkedin.com/in/elena-russell-25461518a/?originalSubdomain=ca
More About the I Love Edmonton Real Estate Podcast
Host Jason Scott of The Mortgage Group talks to everyone and anyone who knows real estate in Edmonton.
Learn from local experts and get the inside scoop on anything that impacts Edmonton’s real estate market. Whether you are thinking of buying, selling or investing in the Edmonton market, Jason and his guests are here to help.
We interview top real estate professionals, decision-makers, influencers, and people who can help you learn more about what’s happening in Edmonton.