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1st Reverse Mortgage

1st Reverse Mortgage

Join us as we talk with Peggy Sage of 1st Reverse Mortgage

Reverse Mortgage Debt in Canada Keeps Climbing as Demand Soars

“The balance is relatively small in contrast to other types of debt, but the growth rate is very high,” Better Dwelling observed.

Until this year, the Canadian reverse mortgage market had been dominated by HomEquity Bank, a Toronto-based lender that has offered its CHIP Reverse Mortgage loan since 1986. But competition came to the country in January when Equitable Bank launched its Path Home Plan; both companies target homeowners aged 55 and older, and offer the product without any form of government backing.

“Canadians deserve options when it comes to their financial well-being as they age, and we want to help homeowners stay in control while still living in their homes,” Equitable Bank’s Kim Kukulowicz said at the time of the product’s introduction.

Reverse mortgage and “equity release” products have increasing appeal in Canada, which faces similar demographic trends as in the United States — Canadians over aged 65 outnumbered children younger than 12 for the first time last year — and sky-high home prices in key markets such as Toronto and Vancouver.

Reverse Mortgage Endorsements Crater in February, Drop 17.6%

February 2018 endorsements were the best since fiscal 2013. It is better than any monthly total for all of fiscal 2016 and fiscal 2014. There is only one month in fiscal 2017 that had more endorsements than the total for February 2018. The total for the first five months of fiscal 2018 is the best since fiscal 2011. Total endorsements for February 2018 is 17.1% higher than the total for February 2017.

But of course we know that the total for the first six months of fiscal 2018 is the best such total since fiscal 2011. On the other hand the total for the month of March 2018 is lowest since September 2005. It is also 17% lower than February 2018 and 19.2% lower than March 2017.

No doubt we will see the real fall in endorsements starting this month. A week from Monday we should have April’s endorsements. The next three months of endorsements could be less than 8,000 endorsements in total.

With few exceptions, May 31 (39 days from now) will mark the end of the period for an application to be assigned a case number and still be endorsed before the start of fiscal 2019. While the fiscal year end of September 30 has no particular significance for most of us, it is an important date for HUD tracking and comparative purposes.

My deceased father has a reverse mortgage - the amount owed is less than the value of the property?

I would like to take out a mortgage to repay reverse mortgage. Do I have to take out mortgage for value property or just what's owed on the reverse mortgage? I'm 1 of 3 heirs and we are to divide the assets equally. But the only asset is the house.

You would need to pay off all liens on the property, before you can transfer it into your names. A mortgage is a lien.