HomEquity Bank, the lone Canadian reverse mortgage lender, has logged a record of new reverse mortgages this year and thus validating rumblings about the anticipated surge in home equity loans.

HomEquity Bank is offering reverse mortgages to Canadians age 55 and older. This year HomEquity Bank is reporting a record of $60 million new reverse mortgages by May of 2017 with a strong target to clip the $100 million mark by the end of the year.

“Canadian seniors are releasing the equity they have built in their homes, transforming it from passive to active,” HomEquity president and CEO Steven Ranson stated recently. “We have seen a shift in mindset: There is a broader understanding of home equity loans. Home equity is often the largest single asset for Canadians, and it is easily unlocked with the help of mortgage experts.”

Many others have pointed to the same fact of Canada’s aging population in parallel with exorbitant growth of real-estate values as a potential source for reverse mortgages demand. For the first time in the nation’s history, adults older than 65 outranked children younger than 15 last year, according to the most recent Canadian census. And as in the United States, Canadian homeowners control a significant amount of home equity – but, unlike their American counterparts, they did not see values fall as precipitously during the Great Recession of 2008.

HomEquity Bank’s reverse mortgage offering is an entirely private program, without the backing of the Canadian government. There is also no claw-back by the Canadian government for any proceeds of such a mortgage. Seniors’ pension claims will not change by receiving funds from a reverse mortgage.

HomEquity Bank’s novel marketing angle is positioning Canadians 55 and older as “the bank of Mom and Dad”, thus spending their retirement cash to put their children through school or to buy homes of their own, thus leaving home equity by means of as their single biggest option for retirement.

 

 

Be your own banker

Equity Take Out Strategy – A Simple Approach

 

The recent increase in property values through a hyperactive real-estate market can work in your favour.

When I began to invest into the Vancouver real-estate market in the early 90s, I leveraged my investments and build on the virtual equity in my homes. I have made Warren Buffets statement of “Buy and don’t Sell” my own and prospered from his investment strategy.

If you are interested to increase your personal wealth through by using your virtual equity in your current home, do contact me and we can discuss on how to do this. I have been successful at this for the past 25 years, and now as a mortgage broker, I have even more insights of leveraging home equity and building wealth on a realistic Equity Take Out (ETO) strategy.

There are no tricks or short-cuts to creating wealth, but there are only sensible and simple ways to make most of your equity in your home. To learn more or to make a personal appointment, contact me here.

 

Reasons to use a mortgage broker

A mortgage broker in Burnaby with more than 25 years of industry experience gained through opportunities in Germany and Canada, Franz Gerber has been helping clients make their mortgage process a quick and smooth one in the area for a long time.

Many people choose to work with a mortgage broker over a bank lender for a variety of reasons. Some enjoy the number of options they are exposed to while others love the personal touch that comes from a relationship with a broker. Franz has identified 4 Great Reasons to Use a Mortgage Broker:

The Power of Choice!

A mortgage broker offers you more options than a bank would. Brokers work with plenty of lenders, all who offer different packages that can be adjusted to fit your specific need. Franz will shop your mortgage to find the best solution that best fits your situation and present you with a list of options for you to choose from. A bank on the other hand may only have two mortgage options for you to choose from which could potentially be unideal for your life at the time.

Franz is also able to secure the best rates because of the vast amount of options available and use it as a negotiation tactic, too.

It’s All About You

To a mortgage broker like Franz, you are the most important person. Firstly, Franz provides his full attention to his clients. He works one-on-one with each of his clients to identify their needs and locate a lender who best fits their needs. He cares about your life and what you are paying for your mortgage which is why he makes sure that your mortgage solution is tailored to your specific needs.

Secondly, Franz works for you. He does not work for a bank or other financial institution. That means that all of his advice and guidance is conducted with your best interests in mind. Typically, brokers cost little-to-nothing to clients as they get paid by the lenders once they find a mortgage option that suits their clients.

Brokers Are Experts

Brokers are experts in the mortgage industry, especially ones who have been around for a long time. Franz, with over 25 years of mortgage experience, has gained valuable knowledge that he uses to help his clients every day. With the knowledge obtained over the years he is able to provide accurate, detailed advice on mortgage products, market conditions and interest rates.

Franz has also learned a thing or two when it comes to negotiating your mortgage. Brokers handle all negotiations and as someone who has developed quality relationships with lenders from working in the industry for so long, Franz is a favourite to secure the most competitive rates and terms.

Everything In One Place

With a broker like Franz, clients are able to get everything they need in one place. Rather than shop a mortgage on your own and visit with numerous lenders, Franz does it all for you and presents you with each option at one time. He also offers many different mortgage solutions to help with whatever it is you need, whether it be buying a second house or looking to refinance your current mortgage.

For further reading on why a mortgage broker is a good idea, check out the following link: http://moneyfacts.co.uk/guides/mortgages/why-use-a-mortgage-broker180511/.

If you’re looking for a mortgage in the area, a Burnaby mortgage broker like Franz Gerber is as safe a bet as you can make. For more information or to begin the journey, contact Franz today!

As the leaves begin to change colour and hockey season is about to begin, it is time to consider your Home Maintenance for Fall. I would like to share a few tips with you for getting your home ready for the Autumn season. Here are few simple things you can do yourself without calling in support from your local handyman.

 

  1. Home Exterior: Begin with the outside of your home and check the siding for holes or cracks. Ask your local hardware store for a repair kit and maintain the life of your siding for many years to come. Don’t forget to climb the ladHome Maintenance for Fallder and clean your gutters from debris. Once the rain begins to fall, there is an immense weight of accumulating water in your gutters, that may damage your gutter line. If you have a wood burning fireplace, give it a good sweep from the top of the chimney and clean out the accumulated soot.
  2. Thermostat: If you are not using a programmable thermostat, consider installing one. They have become more popular among home owners and will help you save energy costs in the long run. Preset the temperature of your home based on time of day and weekday or weekend. This will give you much enjoyment of your home, when you come home to a warm house on those rainy days.
  3. Drafts: Check for drafts around your doors and windows. Use some weather stripping. This is a cheap and effective way to conserve energy, and you can do this quickly on a Saturday morning before you are heading our for your weekend coffee.
  4. Generator: If you are living in Northern B.C., as some of clients do, spend some time to test your winter generator. They are a great tool, helping your family to stay warm, if there should be a power outage and to save your household pipes from freezing. Frozen pipes can be an ugly mess, once they thaw. Been there, done that. And finally make sure you have gasoline handy to operate your generator. Sounds simple, but then many forget about that little detail.
  5. Organize: Take some time to reorganize your garage or storage space in the basement. Clean the bikes and outdoor furniture for winter storage. Take time to winterize your BBQ. This is best done while it is still relatively warm outside. From experience I know to do these things before the rain begins to pour. Perhaps a basement cleanup and rid yourself from the old stuff that you have not used in a year or two. I usually do this around Labour Day and I go through my basement looking for ten things to give away or through out. The local charities will love you for your donations.
  6. Roof Inspection: This was a really hot summer and your roof shingles may have warped or curled in the extreme heat. Give your roof a visual check and replace damaged roof tiles and tar obvious cracks. If you are afraid of heights, get your local roofer to take a look. Better done now, than in the pouring rain. If you have a flat roof, remove debris.
  7. Landscape: Trim back shrubs, trees and bushes around your yard and the ones that are too close to the sides and roof of your home. Make sure trees and bushes stay clear of powerlines, after all you do not want to sit in the dark on a cold winter night, because fallen branches have taken down the powerline to your home.

 

A few hours of proper home maintenance will enhances the appeal and value of your home and keep you from critical emergencies. These events are typically more expensive, time-consuming, and stressful when they occur. 

I have done a lot of work on my own home and you can always call me, if you have questions about Home Maintenance for Fall