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Written on November 17th, 2016

I had a client, who at 84 years old sold his home in order to purchase a home closer to his daughter and her teenage son. Although most people prefer to age in their own homes, this client lived far away from his family, and at this stage in his life, he preferred to be closer to them; family was very important to him and he missed them very much. However, he was concerned: at this age and stage of life, would he be approved for a mortgage?

Here are the numbers:

  • Client 84 years old
  • Sold his existing property for $380,000 with a small mortgage of $80,000
  • The purchase price of his new home was $420,000, but the bank was unable to qualify him for a conventional mortgage.
  • Client was referred to me and we were able to qualify him for a CHIP Reverse Mortgage in the amount of $167,495.
  • Client only needed $120,000 for the purchase but he took $130,000.

This client was very happy after his loan was approved. In fact, he went to the branch a couple of days after to make sure that the extra $10,000 that he had taken had been deposited into his account. As soon as it was confirmed, he withdrew $5,000, placed it in a Christmas card, sealed it and put it in his safety deposit box. He later told the banker that he was going to give the $5,000 to his grandson as a Christmas gift.

You see, my client’s grandson plays hockey and he had the opportunity to play in a tournament in Europe over the March Break, and it would cost $5,000 to get him there. At 84, my client wanted to make sure that the money was safely set aside should anything happen to him between May and Christmas, to ensure that his grandson would have the money to participate in this hockey tournament.

It was very important to him to be able to provide this gift to his grandson so that he could make a difference in his life. I am proud to have had the opportunity to help my client make this wish come true.

To learn more about how a CHIP Reverse Mortgage can help you or a loved one, contact the mortgage professionals at Dominion Lending Centres.