1) Aging demographic: There are many homeowners who have owned a home for 50-60 years that are living longer than expected and have run out of savings. The baby boomers born from 1950-65 aren’t far behind in this trend. Recent studies show that for a couple that are 65 years old today that one will live into their 90’s!
2) Lack of Disposable income: Many recent government and independent studies have shown that a large percentage of retirees lack access to the disposable income they need to maintain their lifestyle in their golden years. They often look to their advisors who see either or both of the Reverse Mortgage products as the answer.
3) Home equity has increased: and is healthier and stronger than ever. For example the average detached home in Vancouver in December 2016 was $1,826,541. A couple aged 73 year old could access over $712,000 TAX FREE!
4) Recent mortgage restrictions: Conventional mortgage rule restrictions have made it harder for many seniors to qualify for a traditional mortgage loan.
5) Over 90% don’t want to move: most homeowners want to stay put in their current homes throughout their retirement but may require cash flow in order to modify the home, provide required home care and other services that may be needed as they age in place with dignity.
Grant Powell - Mortgage & Loan Expert
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