We at Seniors First are frequently approached by seniors who have an existing Reverse Mortgage with one of the bigger banks in order to establish if a cheaper product is available. Almost without exception we are able to offer a cheaper product. We have access to Lenders who offer cheaper interest rates and do not charge monthly fees.
When considering a Reverse Mortgage, always acquire as much information as possible before actually talking to your Reverse Mortgage Consultant. Your Reverse Mortgage Consultant should be well equipped to answer any questions you may have. Knowledge enables you the borrower to make an informed decision on which product best suits you. At Seniors First all our consultants are accredited with SEQUAL and MFAA and have access to Calculators to estimate the eventual outcomes regarding your property equity.
Services provided by Seniors First are free of charge. Our Area Managers are compensated by the Lenders on Reverse Mortgages over $45,000. When the Reverse Mortgage is less than $45,000 a $200 surchage will be levied. This surchage is payable by the borrower upon application by either cheque or money order in favour of Seniors First.
Statistics show that the majority of over 55’s are Assett Rich and Cash Poor. It is also becoming more obvious that seniors or experiencing difficulty living a reasonable standard of living when their only income is the aged pension. Having the ability to release equity in your own home eases the burden of unexpected expenses eg failure of house hold equipment, motor vehicle replacement, holidays.
All consultations with Seniors First are at no cost to the prospective borrower. All our consultants are of mature age giving them the life experience to understand the issues that concern seniors and are always willing to visit you in your home to discuss your options which may not necessarily be remedied with Equity Release. Visit the Seniors First Website and the reversemortgagewatch blog for further information.
Why should you avoid the big banks? Banks were the first to offer Reverse Mortgage Products, however, with the passing of time their products have remained unaltered charging high interest rates and monthly fees. Many Specialist Lenders have since entered the market offering a much more stream lined product at lower interest rates and without monthly fees. At Seniors First we only use lenders who are members of SEQUAL.
A popular myth I often hear is “Reverse Mortgage, that is where they take your house”. This is an untruth, usually voiced by those who have no idea of the concept of Reverse Mortgage. At Seniors First our consultants can demonstrate with a fair degree of accruacy what will happen to the equity in your home many years from now. In addition if you use and you should use a Lender who is a member of SEQUAL you will have a “No Negative Equity” guarantee.
Some Banks charge monthly fees on Reverse Mortgages. These fees are added to your loan. Once they are added to your loan you will find you are accumulating compounding interest. If you are debited $10 per month that is an extra $120 plus compound interest on your loan every year. There are many lenders in the Reverse Mortgage Market who do not charge a monthly fee and frequently their interest ratres are also cheaper.
Yes it is. You may elect to protect up to 20% of Equity in your Property to ensure the children are left with something. This is known as “Protected Equity”
It is not necessary for all residents of the property to be mortgaged to be on Title. For example, in the case of a married couple or a long term relationship if one partner is not on title the borrower may elect for the partner to be an applicant. If the borrower elects for their partner to be a nominated resident, the partner must seek Independent Legal advice with a Solictor of their choice.
