October 13 , 2022  /   Consumer Insights

Top 5 Takeaways from the Pattie Lovett-Reid Webinar

On September 29th, 2022, HomeEquity Bank held a webinar fireside chat with Chief Financial Commentator, Pattie Lovett-Reid and Executive Vice President of Marketing and Sales, Yvonne Ziomecki-Fisher. In this webinar, Pattie and Yvonne had an insightful conversation about today’s economic climate and the financial tools available to help your clients be financially secure. In case you missed it, here are the top five takeaways from the fireside chat.


1. Current Economic Landscape:

A major point of discussion between Pattie and Yvonne in the webinar was about the current economic landscape and how reverse mortgages fit in it. Pattie explained that she looks at four key indicators when studying the economic climate.

  • Interest Rates
  • Inflation Rates
  • Job Losses
  • Growth

Today’s economic climate can be described as having high interest rates, high inflation, three consecutive months of job losses, and GDP growth of 0.1% month over month in August. All of these indicators impact people differently. For example, lower income groups are slammed by rising inflation as they may not have many savings and their wages have not increased proportionally to higher prices. In the webinar, Pattie mentioned that lower income groups need emergency funds, and many are tapping into credit cards or lines of credit as a solution. However, the CHIP Reverse Mortgage can be a better alternative for Canadians 55+ who have equity in their home. They can turn their equity into tax-free cash to increase their monthly cashflow and weather today’s economic climate.


2. Pros and Cons of a Reverse Mortgage:

As with any financial tool, there are pros and cons. In the webinar, Pattie and Yvonne highlight one of the biggest benefits of a reverse mortgage is that it gives people access to much needed cash during turbulent times. For example, with high inflation, many people find it difficult to afford regular expenses such as their mortgage payments. A reverse mortgage can be a great solution for individuals in this situation as it offers them an opportunity to use the equity in their home and use the tax-free cash from their home as a source for emergency funds.

On the other hand, Pattie also points out that one of the biggest costs associated with reverse mortgages are the high interest rates especially in comparison with other financial products such as conventional mortgages. However, the gap in interest rates between conventional mortgages and reverse mortgages is far lesser today than it was six months ago. Furthermore, a premium exists for a reverse mortgage because with a reverse mortgage, your client is not required to make any monthly mortgage payments. In addition, HomeEquity Bank has a No Negative Equity Guarantee which ensures that if your client meets their mortgage obligations, HomeEquity Bank guarantees that the amount they will have to pay on their due date will not exceed the fair market value of their home. If their home depreciates in value and the mortgage amount due is more than the gross proceeds from the sale of the property, HomeEquity Bank covers the difference between the sale price and the loan amount.


3. Product Options:

Another key takeaway from Pattie and Yvonne’s webinar was the discussion of HomeEquity Bank’s Income Advantage product and its value in today’s economic climate. The Income Advantage product allows your clients to take money in smaller increments, which can be especially valuable in today’s climate of higher interest rates, as it only charges the interest on what they have borrowed. Instead of taking out all the money they have been approved for, with Income Advantage, your client can just take some of it for their current needs such as paying off a car loan or credit card. After this, with the remaining money, your client can receive monthly increments of any amount that they choose to supplement their income.


4. Misconceptions:

In the webinar, Pattie and Yvonne also dispel one of the biggest misconceptions surrounding reverse mortgages. This misconception is if a client lives for too long then they will run out of money and will have none left in the later years of their retirement. However, this is false because as clients age, the value of their home continues to appreciate so it’s highly likely that they will still have plenty of equity in their home to assist them in the later parts of their retirement. In fact, Pattie and Yvonne explain that in around 99% of situations, clients still have money left over for the later stages of their retirement.


5. Independent Legal Advice:

One of the most important things that Pattie and Yvonne talk about in the webinar is the importance of independent legal advice (ILA) in the process of getting a reverse mortgage. The process of ILA exists to protect the mortgage broker, advisor, and most importantly the client when getting a reverse mortgage. Before anything is finalized, clients must get ILA through a lawyer they trust. The lawyer carefully explains to the client what a reverse mortgage is and exactly how it works. Furthermore, the lawyer may also discuss other financial tools with the clients such as downsizing or HELOCs in order to ensure that the best available option is being made. The process of ILA is crucial to keeping the clients and everyone else involved protected.


If you would like to hear from Pattie and Yvonne yourself and see them delve into even more details about these takeaways, then click here to watch a recording of the webinar.

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  • On October 13 , 2022
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November 09 , 2023   /   Consumer Insights

10 Telltale Signs of a Potential CHIP Reverse Mortgage Client

Do you have clients aged 55 and above who need help to qualify for conventional lending products? It’s a common scenario, and it can be challenging to find the right financial solution for these individuals. However, there is a valuable alternative that can address the unique needs of this demographic: the CHIP Reverse Mortgage by HomeEquity Bank. The CHIP Reverse Mortgage by HomeEquity Bank is a secure financial solution that enables Canadian homeowners 55+ to access up to 55% of the equity in their home in tax-free cash, without the need to move or sell, and the best part is, they don’t need to make any monthly mortgage payments until they no longer live in the home. To identify prospective clients who may benefit from the CHIP Reverse Mortgage, it's essential to be aware of specific indicators that suggest their suitability for this particular financial solution. Here are ten signs that point to a potential CHIP Reverse Mortgage client. Payment Struggles: The client is making late payments, skipping payments, overdrafts, and complaining about costs/expenses. Declined Applications: The client is declined for conventional lending products due to a low credit score, insufficient income or back taxes owing. Family Assistance: The client's children want to assist their parents to help them maintain their independence financially. Sale of Investments: The client is selling off their registered or non-registered investments. Inheritance: The client is helping a loved one with an early inheritance to help with a downpayment, education, divorce, etc. Death of a Spouse: The client is dealing with the death of a spouse and is struggling with a reduced income and needs to requalify for revolving credit. Grey Divorce: The client is dealing with a divorce and is looking to buy out the marital home from the other spouse. Real Estate Investment: The client wants to invest in real estate or needs a bridge financing solution. Homecare for One Spouse: The client is in need of homecare or assisted living for either themself or their spouse. Financial Strain: The client has a financial plan shortfall and needs to increase their monthly cash flow. Recognizing these signs allow you to proactively engage with your clients in conversations about the potential benefits of the CHIP Reverse Mortgage. If you have any questions or would like to learn more about how the CHIP Reverse Mortgage can assist your clients, please don't hesitate to contact your Business Development Manager. Your client's financial well-being is our top priority, and we're here to support you in achieving that goal.
June 15 , 2023   /   Consumer Insights

How to Recognize the Five Most Common Forms of Elder Abuse

Over three days in December, the HomeEquity Bank Customer Experience team hosted Laura Proctor, a Prevention Consultant from Elder Abuse Prevention Ontario, to teach them more about elder abuse. Laura shared statistics about the prevalence of elder abuse in Canada, explained the different forms of elder abuse, and discussed the impact of elder abuse on older adults and how to recognize it to prevent and stop it. Because of the importance of the topic, we wanted to share what the team learned so you, too, can recognize the signs of elder abuse. Over the next 20 years, Canada’s 65+ population is expected to grow by 68%. With an aging population, it’s crucial for Canadian businesses to recognize this growing demographic and understand the issues they face, such as ageism and elder abuse. Ageism refers to the stereotypes, prejudice and discrimination towards others or oneself based on age. Ageist attitudes can lead to poorer medical and mental health outcomes, employment discrimination, significant monetary loss, increased social isolation and loneliness, environmental stressors, and even elder abuse. The World Health Organization (WHO) defines elder abuse as “a single or repeated act, or lack of appropriate action, occurring within any relationship where there is an expectation of trust, which causes harm and or distress to an older person”. A 2015 study by the National Initiative for the Care of the Elderly (NICE) showed that 8.2% of older adults in Canada experienced some form of elderly abuse. Among older adults, there are five common forms of abuse: Emotional/Psychological Abuse: Psychological abuse is the most common form of abuse among older adults. It consists of any verbal or nonverbal activity that results in the degradation of an individual’s identity, dignity, and self-worth. Individuals who experience psychological abuse typically tend to show signs of increased fear or anxiety. They begin isolating themselves from friends or family, display unusual behavior, and become disinterested in everyday activities. Financial Abuse: Financial abuse is described as any improper conduct, done with or without the informed consent of an individual, that results in monetary or personal gain to the abuser and monetary or personal loss for the individual. Older adults experiencing financial abuse may showcase changes in their appearance, health status, or personal habits. Other indicators include unexplained changes in wills or title documents, increased telephone solicitations for funds, missing personal property, funds wired out of the country for mysterious reasons, missing or redirected mail, and names added to their bank accounts. Physical Abuse: The third most common form of abuse among older adults is physical abuse. It is defined as any act of violence or rough handling that may or may not result in bodily injury but causes physical discomfort or pain. Older adults experiencing physical abuse may display signs of dehydration or severe weight loss. They may be getting over- or under-medicated and display injuries such as bruises, cuts, or sores that they cannot explain. Sexual Abuse: Sexual abuse is non-consensual sexual conduct of any kind with an older person or sexual contact with anyone who is incapable of giving consent. This includes joking of a sexual nature, sending or receiving sexually explicit photos, and inappropriate touching, to name a few. Among older adults, sexual abuse is a form of abuse that is not talked about enough. Neglect: Neglect is the failure to provide care and assistance required for health, safety, or well-being and includes inaction or a pattern of inaction that jeopardizes the health or safety of an older adult. An individual can neglect an older adult by not providing them with food or water, not providing proper clothing or hygiene, or leaving them in an unsafe environment. They may even deny an older adult access to necessary services such as home care, nursing, or medical attention. With Canada’s 65+ population expected to grow by 68% in the next 20 years, it has become more important for Canadians to recognize signs of elder abuse and ageism and take action. To learn what the Government of Canada is doing for seniors, visit canada.ca/seniors. To report elder abuse, contact your local authorities or seniors’ safety line.
February 13 , 2023   /   Consumer Insights

How to Determine if the CHIP Reverse Mortgage is Right for your Client

Each of your 55 or better clients has different financial needs and goals. Some may be motivated to give a loved one a gift of a lifetime by helping with a down payment on their first home. Other clients may want to pursue their passions and interests or travel while maintaining their desired lifestyles in retirement. Others may still be interested in investing in their home by making repairs, refreshing their décor, or renovating with the goal of aging in place. By listening carefully to what your client is telling you – directly and indirectly – you can better identify their needs and provide them with the best advice for their situation. While various scenarios warrant a discussion about a reverse mortgage, HomeEquity Bank has found that individuals who use the CHIP Reverse Mortgage typically fall within four groups based on their financial needs: To alleviate the stress of debt. This client may need help paying credit card bills or making mortgage payments. Additionally, they may be putting their children’s needs above their own and helping with the down payment on a home. They do not want to dip into their savings or investment portfolio. Pay for unplanned expenses. This client may have encountered an unexpected home repair, such as fixing a leaky roof, needing to retrofit their home for mobility reasons or hiring in-home healthcare assistance. Want to live life to the fullest. This client is aged 55+, and like many retired Canadians, they finally have the time to pursue the things they always wanted to do – however, they do not have the funds to support these activities. This client may wish to purchase a vacation property or visit more family and friends out of town. Maintain standard of living. This client needs help adjusting their lifestyle after retirement. They may be experiencing a shortfall in their retirement funds as they try to maintain their accustomed lifestyle. If your clients relate to any of the above scenarios, recognize those challenges and offer a solution that allows your clients to move forward confidently using the CHIP Reverse Mortgage. To learn more about how the CHIP Reverse Mortgage by HomeEquity Bank can help, find a BDM near you.