I have mortgage lending and financial planning experience. I am a debt manager not a loan seller. I believe in utilizing debt to manage cash flow and create wealth.
Want to know how much you can qualify to borrow?? Fill out the short application on this site and I will promptly respond. Note , if you have equity in your home and/or a steady income; you qualify!
Is Reverse Mortgage a bad word??
Definitely not. Depending on your situation this can be a saving grace for seniors (over the age of 55) that want to remain in their home and/or require cash infusion (gift or expense?).
This works especially well for people over the age of 70 that are home equity flush but cash flow poor. The downside is the debt cost is higher than a mortgage but many seniors on fixed incomes cannot qualify for a mortgage.
Dispelling reverse mortgage MYTHS:
MYTH #1: You will lose your house to the bank.
Not true, in Canada you maintain ownership of your home. The bank only places a lien on title that requires the loan to be paid off when house is sold. This is not much different from a regular mortgage.
MYTH #2: If your home drops in value more than borrowed you will owe more.
Canadian reverse mortgages are regulated to never allow this situation to occur; i.e. it is against the law.
MYTH #3: You are stuck with high loan payments.
These account are structured for NO payments; do not have to pay back the loan until sale of home.
MYTH #4: Hard to qualify and expensive set up fees.
False. Easier to apply than a traditional mortgage; costs are only lawyer fees and an appraisal.
Bank of Canada increases overnight rate target to 1 ¾ per cent
The Bank of Canada today increased its target for the overnight rate to 1 per cent. The Bank Rate is correspondingly 2 per cent and the deposit rate is 1 per cent.
The global economic outlook remains solid. The US economy is especially robust and is expected to moderate over the projection horizon, as forecast in the Banks July Monetary Policy Report (MPR). The new US-Mexico-Canada Agreement (USMCA) will reduce trade policy uncertainty in North America, which has been an important curb on business confidence and investment. However, trade conflict, particularly between the United States and China, is weighing on global growth and commodity prices. Financial market volatility has resurfaced and some emerging markets are under stress but, overall, global financial conditions remain accommodative.
The Canadian economy continues to operate close to its potential and the composition of growth is more balanced. Despite some quarterly fluctuations, growth is expected to average about 2 per cent over the second half of 2018. Real GDP is projected to grow by 2.1 per cent this year and next before slowing to 1.9 per cent in 2020.
The projections for business investment and exports have been revised up, reflecting the USMCA and the recently-approved liquid natural gas project in British Columbia. Still, investment and exports will be dampened by the recent decline in commodity prices, as well as ongoing competitiveness challenges and limited transportation capacity. The Bank will be monitoring the extent to which the USMCA leads to more confidence and business investment in Canada.
Household spending is expected to continue growing at a healthy pace, underpinned by solid employment income growth. Households are adjusting their spending as expected in response to higher interest rates and housing market policies. In this context, household credit growth continues to moderate and housing activity across Canada is stabilizing. As a result, household vulnerabilities are edging lower in a number of respects, although they remain elevated.
CPI inflation dropped to 2.2 per cent in September, in large part because the summer spike in airfares was reversed. Other temporary factors pushing up inflation, such as past increases in gasoline prices and minimum wages, should fade in early 2019. Inflation is then expected to remain close to the 2 per cent target through the end of 2020. The Banks core measures of inflation all remain around 2 per cent, consistent with an economy that is operating at capacity. Wage growth remains moderate, although it is projected to pick up in the coming quarters, consistent with the Banks latest Business Outlook Survey.
Given all of these factors, Governing Council agrees that the policy interest rate will need to rise to a neutral stance to achieve the inflation target. In determining the appropriate pace of rate increases, Governing Council will continue to take into account how the economy is adjusting to higher interest rates, given the elevated level of household debt. In addition, we will pay close attention to global trade policy developments and their implications for the inflation outlook.
Genworth’s Home Ownership magazine
Check out Genworths Home Ownership magazine. This issue featuring: Financing Savings advice for families with children; House Hunting What to look for in a family -friendly condo; The Buying Process Is multi-generational homebuying right for you?