As Canada’s inhabitants ages and the necessity for retirement earnings options grows, reverse mortgages have gotten an more and more enticing possibility for householders who’ve constructed vital dwelling fairness.
The numbers paint a transparent image of this shifting panorama. More than 40% of Canadian homeowners are 55 or older and three million households are anticipated to enter retirement over the following decade.
The chance
For mortgage brokers seeking to develop their reverse mortgage enterprise, constructing strategic partnerships with realtors brings many advantages. Realtors are sometimes the primary professionals householders seek the advice of when excited about promoting, downsizing, or accessing their dwelling fairness.
By working collectively, mortgage brokers can faucet into a gradual pipeline of certified leads, whereas realtors can improve their worth by providing shoppers a wider vary of versatile financing choices and in the end growing their enterprise alternatives.
Nevertheless, some realtors could not absolutely perceive the worth and fashionable makes use of of reverse mortgages, or they could nonetheless maintain outdated misconceptions in regards to the product. Savvy brokers who place themselves as educated and dependable companions can bridge this hole and kind mutually helpful relationships.
Strategic makes use of of CHIP
The CHIP Reverse Mortgage from HomeEquity Financial institution, allows Canadian householders age 55+ to transform a part of their dwelling fairness into tax-free money with out having to promote their properties or make month-to-month mortgage funds. Whereas usually used to consolidate debt or complement retirement earnings, the CHIP Reverse Mortgage is more and more being leveraged for extra strategic monetary planning targets.
Buy a second property. Purchasers can use the funds they obtain from the CHIP Reverse Mortgage to buy a trip dwelling or a rental unit for funding functions, with out dipping into their registered financial savings or portfolios. Meaning no capital positive aspects to report, no taxable withdrawals, and no disruption to their long-term funding technique. And shoppers don’t want proof of earnings to execute this technique, making it extra accessible for retirees. In some circumstances, a blanket mortgage – which covers each the first residence and the brand new property – could possibly be explored as a financing technique for these searching for larger leverage and adaptability.
- Main enterprise alternative. The realtor closes the purchase facet on the acquisition of a trip property or rental property.
- Secondary enterprise alternative. Present an answer to entry the funds to buy the second property – utilizing the CHIP Reverse Mortgage on the principal residence to acquire the mandatory funds.
Gifting a down cost on a house. First-time dwelling consumers are more and more counting on their households for monetary help. The common reward for first-time dwelling consumers has risen to $115,000 – an increase of 73% from 2019 levels. This makes it more and more tough for financially stretched households to supply help. The CHIP Reverse Mortgage can be utilized to supply kids or grandchildren with a dwelling inheritance to buy their first dwelling. By utilizing CHIP, mother and father can maintain their funding and retirement plans intact, with out going through month-to-month mortgage funds or impacts on their very own money movement.
- Main enterprise alternative. The realtor closes the purchase facet on the acquisition of a house for a member of the family (a standard mortgage is required for the purchaser).
- Secondary enterprise alternative. Present an answer for a gifted down cost on a brand new dwelling – dad or mum or grandparent makes use of the CHIP Reverse Mortgage to entry the funds for the down cost.
Quick-term bridge financing. Purchasers who’ve discovered their subsequent dream dwelling might have extra time earlier than promoting their present dwelling – maybe to renovate and entice a better worth or simply to handle the transfer higher and cut back stress. CHIP Open by HomeEquity Bank is a reverse mortgage answer designed for short-term financing. It permits shoppers to entry the fairness of their dwelling and switch it into tax-free money with out having to make month-to-month funds. After their dwelling sells, shoppers can repay the complete quantity on their CHIP Open – with out incurring prepayment penalties.
- Main enterprise alternative. The acquisition of a brand new dwelling earlier than promoting the prevailing dwelling.
- Secondary enterprise alternative. Present a short-term bridge financing answer to entry tax-free funds wanted for a down cost on a brand new dwelling utilizing the CHIP Open. After the prevailing dwelling sells, the mortgage may be paid again with out prepayment penalties.
These are just some methods you may assist realtors improve their worth and shut extra offers by providing their shoppers versatile financing choices.
3 simple steps you may take right this moment
- Set up a realtor info session. Companion with one among our Enterprise Improvement Managers (BDMs) to arrange an info session with native realtors.Your BDM will make it easier to join with the suitable realtors and put together your presentation, specializing in the CHIP Reverse Mortgage and its strategic planning makes use of.
- Co-host an open home with realtors. Staff up with realtors to co-host an open home to share CHIP advertising and marketing supplies. HomeEquity Financial institution’s Partner Launchpad, provides you entry to a collection of professionally designed, customizable, and ready-to-use supplies, together with newsletters, emails, and social posts. These occasions are additionally nice alternatives to handle myths and misconceptions about reverse mortgages.
- Assessment your present shopper checklist. Take a recent take a look at your database with help out of your HomeEquity Financial institution BDM or BDA, who may help uncover ignored alternatives. One dealer aiming to broaden her reverse mortgage enterprise found a wealth of potential partnerships proper in her yard – actually. Her BDM urged she speak along with her husband, a seasoned realtor with deep native ties. The BDM then delivered a focused presentation to him and his colleagues, opening the door to a pipeline of referral alternatives already inside attain.
Longer-term advantages
Constructing partnerships with realtors could take some effort and time, however the long-term payoff may be vital. These relationships can generate a stream of heat leads, enhance your visibility, and place you as a trusted knowledgeable within the reverse mortgage area. Plus, you’ll be serving to Canadians make extra knowledgeable monetary choices about their properties.
Partnering with HomeEquity Financial institution
For over 37 years, HomeEquity Financial institution has been devoted solely to serving Canadians age 55+ with reverse mortgage options, just like the CHIP Reverse Mortgage. As the one financial institution in Canada specializing on this demographic, we provide unparalleled experience and belief.
To be taught extra about CHIP, contact your HomeEquity Bank BDM or BDA or go to chipadvisor.ca. You can too entry a webinar on rising your reverse mortgage enterprise via realtor partnerships by visiting chipadvisor.ca/webinars/.
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Final modified: June 5, 2025