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“We can no longer dismiss a reverse mortgage as an icky last resort for financially desperate homeowners.”

Since their introduction in 1986, there has been only one source for reverse mortgages, Home Equity Bank. Now there is another player.  Equitable Bank has entered the market with a similar product. We can only assume that Equitable bank sees a major market expansion coming, in reverse mortgages.

The Big Five Banks won’t tell you about reverse mortgages, because they haven’t them available. As a matter of fact, the financial advisers working for banks try to dissuade their clients from getting a reverse mortgage, rather than a product that they offer.

Equitable Bank sites three reasons for entering the market at this time:

1.        An aging demographic means more people are becoming eligible.

2.       Soaring home prices in some cities have given homeowners a huge and unexpected equity.

3.       The cost if retirement has increased and people have doubts about whether they have enough savings to cover it.

General, ‘Equity release’ has become more popular and less frowned upon.

A month ago, I predicted that the next entry into the reverse mortgage business would be Manulife. They are almost there with their Manulife One product, but not quite.  One must qualify by income to get a Manulife One mortgage and this is not so for most applications to Home Equity Bank. As well, the value of the home can exceed the accumulated debt with Manulife, but not with Home Equity Bank.

In the end, it will be up to professional mortgage agents, with knowledge of all the products, to advise their clients on what is best for them.

Call me to discuss the potential of a reverse mortgage for you 866-435-3748

The wonderful delicacy of fresh pike’s liver:

First, find a sizable freshly caught pike or two. Extract the liver, carefully so as not to puncture the bile sack, Rinse and dry and season lightly with salt and pepper. Dust with flour and sauté lightly. Serve with a squeeze of lemon juice.