New Lender on the Block? Meet Bloom.
Bloom is a new lender on the Reverse Mortgage block. Contact me today to learn more about this lender and their amazing product!
“Thousands of 55+ Canadians are beginning to realize just how wealthy they are, when they consider the equity they’ve built in their homes.”
The Reality of Reverse Mortgages
Let’s summarize the realities of reverse mortgages:
The “Home Equity Guarantee”
A reverse mortgage comes with a home equity guarantee. This is a promise that a borrower will never owe more than their property’s fair market value in cases where real estate prices drop, and/or the loan balance exceeds the value of the home.
A Reverse Mortgage Gives Peace of Mind
Many borrowers like reverse mortgages because they’re “set it and forget it”. As long as you keep up with your property obligations, like paying your property taxes and insurance, and keeping your home in good repair, you’ll never have to make a payment on the mortgage during the loan term, and you can stay in your home as long as you want. Other products like HELOCs come with “loan to value caps”, meaning if the loan balance exceeds a certain limit, you’ll be forced to sell your home and repay the balance. That will never happen with a reverse mortgage.
Home Equity Can Continue to Grow
Some people worry that the balance on a reverse mortgage will eat into their home’s equity over time. However, as long as real estate prices continue to increase, home equity can also continue to grow alongside the mortgage balance.
Tax-Friendly
Reverse mortgage proceeds are treated favorably from a tax perspective. Unlike selling investments from your retirement portfolio to fund expenses, which usually comes with capital gains tax, according to the Canada Revenue Agency, reverse mortgage payments cannot be taxed as they are considered the same as loan advances from a traditional mortgage.
The Demand for Reverse Mortgages Is on the Rise
The demand for reverse mortgages is growing rapidly in Canada, for a few reasons. First, home prices have risen considerably in the past number of years, meaning many 55+ Canadians are realizing just how much wealth they have in their homes. Second, interest rates on reverse mortgages are as low as they’ve ever been. Lastly, thousands of Canadians are beginning to realize that their prior misconceptions about reverse mortgages are wrong, and are beginning to see the power of this product to transform their lives in retirement.
A Financial Boon
When you realize all the benefits of taking out a reverse mortgage, you will see how it can be a boon to any Canadian senior who wants to make the most out of their retirement years.
Increase Your Financial Freedom
What are your goals in retirement? Do you want to travel, renovate your home, or give money to your children or grandchildren to make a down payment? Reverse mortgages can give you that financial flexibility. When you start to dispel the reverse mortgage myths and look the realities square on, it becomes clear that this is a product worth looking into further.
SOME FREQUENTLY ASKED QUESTIONS FROM BLOOM MORTGAGE CLIENTS:
Will I still own my home?
You continue to own 100% of your home, just like a normal mortgage.
Will there be anything left for my children?
Over 99% of reverse mortgage customers have equity in their home when it comes time to repay the mortgage, and in most cases the amount of equity is more than 50% of the home value. Additionally, more and more seniors are using reverse mortgages to provide a living inheritance to their loved ones.
Can I owe more than what my home is worth?
This is very rare, because of the benefit of home price growth over time. However, in the rare case that this occurs, rest easy. We give you our Home Equity Guarantee, meaning you’ll never have to pay us more than the fair value of your home.
All information has been gathered from the Bloom Finance Company Website. Any and all credit is due to Bloom Finance Company.