Colin Ainsworth

My wife and I are both 69. Considering a reverse mortgage. Concerns?

A very valid product for many retired homeowners. Main things to understand: no monthly payments required, but interest compounds; you retain ownership; typical rates are 7.24-7.79%. Are you looking for a lump sum or a line?

Lump sum for renos and a small cushion.

Understood. How much are you thinking?

$240K or so. House is worth ~$780K, no mortgage now.

At 68-69, CHIP and HomeEquity Bank will typically go to 45-55% of home value depending on age. On $780K, up to ~$390K available. $240K is well within range.

What about my heirs?

Your estate settles the reverse when you both leave the home permanently. Whatever equity remains after paying off the reverse belongs to your estate.

That's better than I thought.

It's often misunderstood. Would you like a broker who specializes in reverse mortgages to walk you through the exact numbers?

Yes. No rush.

Kevin Larose (Kitchener region, reverse specialist). Note he's on leave until Aug 1 — I'll ensure another broker follows up in the meantime.