In this blog I'll be covering the top five ways clients can use reverse mortgages when working with a realtor.
1. Clients often want to sell their home and downsize to free up equity and pay off debt or help fund retirement. A reverse mortgage could be used to purchase the clients a home that's better in size or maybe in a more desirable neighborhood. While still freeing up equity to better fund the retirement, they want and deserve.
2. If clients are wanting to purchase the vacation or recreational property. But aren't sure they can afford it or are concerned about cashing out other investments to complete the purchase. By using a reverse mortgage, they can keep ownership of their current home and use some of the equity to make the purchase in the most tax-efficient manner instead of cashing out other sources of income generating investments.
3. A realtor can help an older client who wants to purchase an investment property. The client can have access to equity in their current home using a reverse mortgage to make the investment property purchase. The best part is the interest that accrues each year is a tax write-off against a rental income that investment property generates. But be sure to speak with your accountant for tax specialist advice about any tax implications or benefits before using this strategy.
4. In an always competitive Vancouver housing market a realtor could help a client wanting to assist a family member buy a home. A reverse mortgage can be used to unlock the equity from an older client's home, so they can gift a warm inheritance to their children or grandchildren helping them into or upgrade in this real estate market.
5. In the unfortunate event of a divorce or a separation the shared home often needs to be sold leaving both parties in need of a new place to live. A realtor can help these clients sell their shared home, then assist each party purchase a new home by using a reverse mortgage to top up the balance of the purchase. The result is two happy clients and three sales in one.
So, there you go, the top five ways clients can use reverse mortgages when working with a realtor. This covers only some of the uses of this product and if today's post raised more questions about reverse mortgage and you want them answered, please reach out to me directly 604 551 7959
As always, thanks for reading!