(NC)-For many years, reverse mortgages were seen by some as being something of a last ditch effort to recoup the equity of one's home during times of financial strife. As a result, reverse mortgages were sometimes relegated to the back of the line when people were considering loan options.
However, recent research of financial planning trends indicates that reverse mortgages may now have their time in the sun. According to an Environics study commissioned by Canadian Home Income Plan (CHIP) which targeted independent and bank-affiliated financial planners and mortgage brokers in Ontario, Alberta and British Columbia, half of advisors are likely to recommend to their clients a reverse mortgage instead of selling or downsizing their home or counseling them to reduce expenses.
The study highlights the evolution of perceptions of reverse mortgages as sensible financial solution.
"Consumer views of reverse mortgages have come a long way in the last few years," said Jeff Spencer, regional vice president of Dundee Wealth Management. "Clients over 60 are looking for more income. Consequently, our investment advisors are coming to appreciate the fact that having an additional $100,000 in a client's portfolio gives them more flexibility to deliver increased cash flow. That's why we see increasing numbers of financial professionals taking a close look at all the options available for their clients. This includes solutions such as the CHIP Home Income Plan."
The CHIP Home Income Plan, designed exclusively for homeowners aged 60 and older, enables Canadians to access up to 40 per cent of their home's value, with no income, credit or medical requirements.
By obtaining a CHIP Home Income Plan and unlocking the equity in their home, Canadian seniors can improve their cash flow and generate a steady and dependable income stream for years to come.
More information on this topic is available online at www.chip.ca or toll-free, 1-866-522-2447.
Credit: www.newscanada.com