Large Credit Limits
The maximum reverse mortgage we “officially offer” is $1.5million, but with board approval we have gone as high as $3million Because our approvals are based primarily on client age and property, clients with higher value homes can qualify for a much larger credit limit with a Reverse Mortgage than with any traditional income qualifying lender.
-Mr and Mrs Jones live in West Vancouver and their home has gone up nicely over the years, now sitting at $5m. -They are 70 years old, seeing that they have most of their net worth tied up in the home, but aren’t ready to sell yet. -With a Reverse Mortgage, we can offer them an advanceable credit limit of $1,497,495 which they can draw from for anything they need.
In this case, Mr and Mrs Jones used the funds for the following:
Paid off their existing credit line for $300k so they could stop making payment
Bought a new car
Put on a new roof
Gifted $200k to each of their 3 children as an early inheritance
In the end, they have absolutely no payments to make on this loan, and still have $550k of available unused credit that they can tap into for anything they need for as long as 1 of them live there.