FRANÇAIS
CONTACT US: marketingrequests@heb.ca

June 29 , 2023  /   Advice

Help Your Clients Access the Equity in Their Home to Leave a Legacy

Over the years, I have had the opportunity to speak to many people about their financial and estate plans. It is rarely an easy conversation, but it is often a necessary one. One of my observations is that estate planning is so much more than simply identifying executors and passing down wealth to future generations in a tax-efficient and fair manner. Sure, that is a key component; however, it often comes down to so much more than the money. It is often the impact on the lives and memories created through experiences, moments, emotions and lasting contributions to family, friends, and society.

Leaving money can be a linear way of securing a legacy, but the key for many clients is taking the time to reflect on the deeper and more relevant questions: What do they want their legacy to be? How do they want to be remembered? What sort of long-lasting imprint will reflect the life they lived, and the memories left behind?

I can share some of the ways we have embarked on this journey with our own financial advisor.

We decided long ago that our grandchildren didn’t need designer clothing or another random toy. They’re still very young but will eventually need some form of post-secondary education. We believe education is the great equalizer and can unlock potential and create opportunities. In other words, for birthdays, special occasions, and holidays, we contribute to an RESP and hope this becomes the foundation that supports their goals. We feel we have an opportunity to leave a legacy of empowerment.

As part of our legacy, we also built a family cottage, ironically after our four children became adults and had children of their own. We wanted it to be a touchstone for the family, designed to bring people together in a casual setting to create moments and unforgettable memories.

But we haven’t mastered it all yet. We are all a work in progress, and others have influenced some of our thoughts. For example, family holidays could shape a desire for exploration and leave a legacy of wonder. Or consider making a difference in the broader community through volunteering or philanthropy. Acts of kindness and giving back can influence others to give of themselves and inspire a sense of social responsibility.

The reality is that, like us, your clients haven’t mastered it either. Have they thought about the life they lived and the legacy they truly want to leave behind? This is where you can come in and provide much-needed advice to allow them to make better, informed financial decisions.

Regardless of the legacy they choose to leave, they all require money to some degree. The good news is that there are more solutions available to retired Canadian homeowners than they, or their advisors, often realize. For example, one solution may be to free up some of the equity in their home through a reverse mortgage to provide a little financial wiggle room. In fact, being able to take out some of the value in their home and direct it towards something that may give their life more meaning is one of the main reasons I joined HomeEquity Bank.

With the CHIP Reverse Mortgage by HomeEquity Bank, no monthly payments are required, and your clients have the flexibility to take only as much as they need. This means that your retired clients on a fixed income can stay in the home they love while also having the ability to leave a financial, educational, or even adventurous legacy.

It is worth exploring ways of creating a legacy for your clients that transcends financial wealth and focuses on love, compassion, adventure, knowledge, and much more.

Want to learn how a reverse mortgage can help your clients age in place? Speak with a HomeEquity Bank Business Development Manager today.

-Pattie Lovett-Reid
Chief Financial Commentator
HomeEquity Bank

  • Posted by
  • On June 29 , 2023
  • 0 Comments
  • 0 likes
Stay Informed!  
Get the latest news & valuable content sent right to your inbox.


Your information is protected, and we will only use it to send marketing communications and special offers. It will not be shared with third parties.

Related Articles

Navigating the 2024 Economic Landscape with Insightful Perspectives and Forecasts from Pattie Lovett-Reid
January 30 , 2024   /   Advice

Navigating the 2024 Economic Landscape with Insightful Perspectives and Forecasts from Pattie Lovett-Reid

Bank of Canada’s MoveTiff Macklem, the Bank of Canada governor, is becoming as well-known as a rockstar. We hang on to his every word, look for clues in the commentary, and hope our economy is heading towards a recovery. Why? Because for so many, our financial livelihood depends on it. The Bank of Canada did exactly what we expected -for the fourth consecutive rate announcement, the bank rate unchanged at 5%. However, in the commentary, Tiff Macklem made a key point. “If the economy evolves broadly in line with the projection published, I expect future discussions will be about how long we maintain the policy rate at five percent,” Macklem said. Inflation and Economic RealitiesInflation is tamer and has decelerated but has not yet hit the desired 2% target. Shelter costs are still high for renters and homeowners, healthcare costs continue to climb, and even areas such as car maintenance remain stubbornly high. The job market has proven more resilient than anyone initially thought. Yet, the private sector has been scaling back on hiring for the past three months. Our productivity levels are low, and without meaningful business investment in Canada, further job losses could be on the horizon. No one worries about paying their bills or debt levels when they have a job or money coming in, but things can quickly spiral out of control should the situation change. We are still determining if our economy is heading toward a soft landing or a mild recession. And, while we focus on our current economic landscape, external wildcards are also worth considering, such as, escalations in the Middle East, mounting tension between China and Taiwan, and the risk to trade pending the outcome of the upcoming US election. Anticipated Rate Cut: A Spring Surprise?Despite all this, there are still expectations for a rate cut in the spring, anywhere from 100 to 150 basis points. Will this materialize? Maybe. However, timing the real estate, stock, currency, and interest rate markets is a mug’s game. Guiding Clients Through Economic UncertaintyA far more prudent approach is to help your clients succeed and empower them to take control of what they can, even in an environment where they feel they have no control.Now is the time to meet with your clients to discuss their readiness to move forward as the economy does. It is ok to ask if their balance sheet has improved along with the economy. If needed, advise clients to pause discretionary spending on significant purchases they can’t afford. Inflation is coming down as rates have gone higher, supply chains for now are flowing, and demand is more balanced, but it is still going to take time. Helping clients explore all their options to fund their lifestyle should be on the table. These include a home equity line of credit (HELOC), the CHIP Reverse Mortgage, downsizing their home, or taking money out of their investment portfolio. It is always a good time to ensure your client’s savings and investments align with their risk tolerance, time horizon and asset allocation. Remind clients that they don’t have to prop up the economy single-handedly; if they can afford to spend, it is ok to spend. Our economy needs that. You can provide guidance, insight, and direction to help your clients make the most out of their financial situation. With HomeEquity Bank your client has many flexible options to help them get the most out of the equity in their home. Find out how much your client may qualify for and arrange a Reverse Mortgage solution tailored to their unique needs by using the reverse mortgage calculator. To learn more about empowering your clients with the CHIP Reverse Mortgage during economic uncertainty, please contact your HomeEquity Bank Business Development Associate (BDA) or Business Development Manager (BDM). Pattie Lovett-ReidChief Financial CommentatorHomeEquity Bank
Reverse your thinking on reverse mortgages and help your clients supplement their income by PLR
December 19 , 2023   /   Advice

Reverse your thinking on reverse mortgages and help your clients supplement their income by PLR

For a long time, reverse mortgages have lurked in the shadows of misconception, creating uncertainty among both consumers and financial professionals in the mortgage industry. I used to share in this skepticism, even voicing my concerns about reverse mortgages on national television. However, as I delved deeper into the nuances of this financial tool, I uncovered a different reality—one where many of the fears and uncertainties surrounding reverse mortgages were unfounded. I began to view them as a viable solution for retired Canadian homeowners. The Perceived Misconceptions So, why are reverse mortgages so misunderstood? Among the concerns voiced by potential clients are misconceptions about: The bank assuming ownership of their home. However, with the CHIP Reverse Mortgage by HomeEquity Bank, clients always maintain the title and ownership of their homes. The possibility of owing more money than their home's value. A safety net called the "No Negative Equity Guarantee*" provides reassurance in these situations. The No Negative Equity Guarantee ensures that if your client meets their property taxes and mortgage obligations, HomeEquity Bank guarantees that the amount owed on their due date will not exceed the fair market value of their home. The surviving spouses are stuck paying the loan if their partner passes away. This is not true if the surviving spouse is on title, they can choose to remain in the home. However, the increasing demand for reverse mortgages in Canada signals that it's time to reassess our perceptions of this financial tool. The Changing Landscape Several factors contribute to the growing necessity of integrating CHIP Reverse Mortgages in your business and your client's retirement plans. These include: An aging population A robust real estate market Elevated consumer debt levels A rising number of retiring Canadians. Recognizing the importance of dispelling myths around reverse mortgages and assisting financial professionals in better serving their clients, I took on the role of Chief Financial Commentator at HomeEquity Bank in May 2022. I aimed to ensure Canadians made informed decisions about their financial futures. Exploring the CHIP Reverse Mortgage Solution The CHIP Reverse Mortgage stands out due to its distinctive features. Unlike traditional mortgages, it doesn't require monthly payments. Clients can access up to 55% of their home equity in tax-free cash, and since these funds are considered a loan, they don't impact taxable income or benefits like Old Age Security (OAS). Repayment only becomes due when clients decide to move or sell their homes. The amount a client can borrow is determined by several factors, such as age (both homeowners), home location, type, and appraised value. Clients typically use funds from the CHIP Reverse Mortgage for various purposes: Debt Consolidation: Clearing monthly mortgage payments or high-interest credit card debt brings significant financial relief in retirement. Home Renovation: Many retirees aim to stay in their homes, requiring renovations for accessibility and safety, which these funds can cover. Health Expenses: Aging often increases medical costs, and the reverse mortgage can help offset these expenses. Income Enhancement: Instead of depleting investments, clients can supplement monthly income, improving their retirement lifestyle and financial security. Legacy Planning: Some use the CHIP Reverse Mortgage to leave a financial legacy for their loved ones. When helping your clients fund their retirement, showing them that they have options is crucial. By empowering them to understand the pros and cons of these options, they can make the right choices for themselves and their families. To learn more about how the CHIP Reverse Mortgage by HomeEquity Bank can benefit your clients, connect with a HomeEquity Bank Business Development Manager (BDM). These experts offer guidance on identifying potential clients and effective communication strategies. Resources like chipadvisor.ca provide tools like the Financial Illustration tool, helping with determining client eligibility and tailoring solutions. You can also access Broker Launchpad, a portal offering pre-written marketing materials to promote this unique financial option effectively. It's time for financial professionals to shift their perception of reverse mortgages. Embracing this financial tool can pave the way for a more secure and comfortable retirement for clients 55 and better. *The guarantee excludes administrative expenses and interest that has accumulated after the due date.
Enhancing Retirement Comfort: The CHIP Reverse Mortgage Solution for Home Renovations
October 23 , 2023   /   Advice

Enhancing Retirement Comfort: The CHIP Reverse Mortgage Solution for Home Renovations

For many Canadians, retirement signifies a shift towards spending more time at home, cherishing the space filled with memories. The desire to live a comfortable quality of life in retirement has driven a surge in home renovations. While renovating a home can be an exciting project, it often comes with a considerable price tag. For homeowners aged 55 and above, the CHIP Reverse Mortgage by HomeEquity Bank can be a game-changing solution, making those home improvement dreams a reality. The CHIP Reverse Mortgage Solution The CHIP Reverse Mortgage has been the solution of choice for many Canadians 55+. With a reverse mortgage, your clients can access up to 55% of their home's value in tax-free cash, which can be used in a wide range of home improvement projects. Typically, as we age, home renovations go beyond aesthetics and instead focus on making daily life easier. The CHIP Reverse Mortgage not only provides the necessary funds for these renovations but also offers the benefit of not requiring any monthly mortgage payments, easing the financial burden during retirement. Five Common Home Renovation Projects Funded by the CHIP Reverse Mortgage Accessibility (Doors and Stairs): Your clients may seek to make their homes more accessible for daily comfort. Projects like widening doorways for wheelchairs and installing chairlifts for stairs are common to enhance the functionality of living spaces. Bathtubs and Showers: Preventing slips and falls is a top priority for many clients. The installation of walk-in bathtubs, along with shower seats and grab bars in the shower, can help prevent accidents and reduce fatigue. Doorknobs to Lever Handles: With the natural weakening of muscles and grip strength that come with age, clients often replace traditional doorknobs with lever handles, making daily living significantly more manageable. Flooring: Old tile and hardwood flooring can become safety hazards. Clients may opt for new flooring with non-slip ratings, especially in high-traffic areas like entryways, bathrooms, and kitchens. Lighting: Enhanced lighting, such as sensor lighting at entry points, can greatly improve safety for aging clients, especially those with nighttime vision impairments. This not only offers peace of mind but also eliminates the need to search for light switches. For clients aged 55+, the CHIP Reverse Mortgage by HomeEquity Bank is a powerful financial tool that enables them to finance these home improvement projects. From enhancing accessibility to preventing accidents and making daily living easier, the CHIP Reverse Mortgage empowers your clients to enjoy their retirement to the fullest. It's a financial solution that not only transforms living spaces but also transforms lives, ensuring that retirement is a time of true relaxation and enjoyment. To learn more, contact your Business Development Manager.