Concerns about economic impact of Covid-19 disruptions did not spare Canada, but some of the recent signs show that a return to normalcy is imminent. In a situation where many people need cash in the near future, Canadian homeowners are left to negotiate strategies that were reasonable without a lot of risk only a few weeks ago. Fortunately, oversupply of housing units, which would lead to sharp drop in prices, has largely been avoided. Reverse mortgages, in times like these, quickly became a viable method of obtaining the cash flow. Long-time favorite of senior citizens, they are becoming a financing solution attractive to general population. The appeal of reverse mortgages is further increased by the fact that the whole closing and appraisal process can be done virtually.
- People in need of cash flow can’t trust the stock market right now.
- Low mortgage rates are appealing, and new technology allows the process to be conducted remotely.
- Seniors are turning to reverse mortgages as a way to keep their homes.
“Most homeowners have been savvy enough to avoid selling their properties at a time when buyers, realtors and appraisers can’t even view homes in person.”