Common Misconceptions About Reverse Mortgage and The Truth About Them

Posted by Nicolle Dupont Reverse Mortgage Specialist on April 16th, 2021

Reverse mortgages in BC can be a good alternative option for people looking for some extra cash. However, not many people tap into Reverse Mortgages in BC because they harbor some misconceptions about it. It’s time to find out what these misconceptions are and what the truth behind them is.

Misconception #1: Reverse Mortgage means selling your home to the bank.

This is the most common misconception people have about reverse mortgages in BC. Many think that it’s akin to handing over the ownership to the bank. This isn’t true. When you get a reverse mortgage, you won’t be giving up the title to your home and handing it over to the bank.

Misconception #2: I won’t be able to afford the fees from a reverse mortgage because it will be too steep.

The fees are comparable to the rates imposed by housing associations. However, this varies from one lender to another. There’s no harm in making some calculations beforehand. You can also talk to reverse mortgage specialists such as Nicolle Dupont to understand if this would be a good option for you and if you can afford the rates.

Misconception #3: You won’t qualify for a reverse mortgage if you don’t completely own your home.

What if you still have a mortgage left on your home. Will you be able to qualify for a reverse mortgage? Yes, you can. In fact, many borrowers use reverse mortgages in BC so they can pay off the remainder of their mortgage.

Misconception #4: Reverse mortgages should be treated as a last resort.

If you have other better options for a loan, go ahead and explore these options. However, a reverse mortgage can also be a primary option. You can tap into this resource if you are dealing with emergencies. It’s much easier to get a reverse mortgage because you have already built equity for your home than it is to get a loan elsewhere.

Misconception #5: You might owe more than the value of your home.

The thing about a reverse mortgage is that it is a non-recourse type of loan. That means it is impossible for you to owe the bank more than the value of your home.

It’s best to learn more about reverse mortgages so you can set the record straight and determine if they can bring a lot of benefits to your life. But if you are in need of extra cash for emergencies or other purposes, you definitely should not completely write it off. There are benefits to it that you can’t get with other types of loans.

You can consult a reverse mortgage specialist instead if you still have apprehensions about it and find out how you can make it work for you.

Kyle Mayers is the author of this article. For more details about Mortgage Brokers Vancouver please visit our website: reversemortgagesinbc.com