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(January 31, 2023)

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When it comes to mortgages, senior citizens have found it particularly hard in today’s elevated interest rate environment, especially those without prior employment-linked pension plans. But despite the challenging landscape, many viable mortgage qualification opportunities still exist for Canada’s seniors. Canadian lenders continue to apply their general qualification guidelines to all applicants despite their age and status (pensioner). Although there is no officially recognized legislation or policy, there seems to be a common stance amongst all of Canada’s lenders to not discriminate based on age/status. So, if you’re 65 or older and looking for a mortgage, read on!

Before exploring mortgage products and solutions, it is important to note that there are three (3) distinct qualification pathways for seniors in Canada; Income-based qualification, Asset-based qualification, and Equity-based qualification:

1. Income-based Qualification: based on fully verified income confirmation (i.e. pay stubs, employment letters, pension statements, personal income tax documents)

2. Asset-based Qualification: based on investment or bank account liquid assets (i.e. savings, investment portfolios)

3. Equity-based Qualification: based on existing home equity values (existing mortgage to market value ratios)

Together, all three qualification pathways encompass a broad spectrum of solutions to help address virtually every qualification challenge known to Canada’s growing senior/retiree/pensioner demographic. The application process for this demographic is no different than any other applicant profile, however, the critical differentiator is the availability of solutions offered. Although every financial institution has the best intentions of offering mortgage solutions for all their customers, the fact remains that not one/singular bank (or financial institution) has all the solutions to match every applicant’s unique needs. This is particularly magnified by Canada’s Senior/Retiree/Pensioner demographic as every application presents its own unique challenges. Product offerings and qualification criteria vary significantly from one lender to another. Therefore, It is critical to engage with a mortgage broker to ensure complete access to every possible senior-focused product provider available in Canada’s marketplace. Call Marko right now at 604-800-9593 to discuss your unique requirements, or Click Here to schedule a call.

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Below is a brief description of some Canadian senior-focused mortgage solutions:

Payment Reduction Plan: a mortgage solution that focuses on reducing your mortgage payment. This is for applicants who are currently experiencing reduced levels of disposable income and would benefit from having lower monthly mortgage payments. This is primarily achieved by resetting an amortization schedule to the highest possible threshold, thereby, yielding a lower mortgage payment.
Debt Consolidation Plan: substantially decrease your overall monthly payment obligations by accessing your home equity to pay off existing debts
Payment-Free Lump Sum Equity Take Out: access your home equity up to 55% of its appraised value and never make payments on the loan
Payment-Free Monthly Income Supplement: re-structure and design your home equity to fund your retirement while you still live in your home
Build-Your-Own-Bank: re-structure and segmentize your home equity allowing you to allocate specific sums and financing terms for particular purposes (i.e. lend money to a family member, withdraw funds for investment purposes, reserve funds for unexpected expenses). Qualify for a global limit, but only make payments on the running balance.

Are you a senior, retiree, or pensioner? Wondering what options are available to you? Call or text Marko right now at 604-800-9593, or Click Here to schedule a call to find out if any of the senior-focused solutions above are a fit for you.

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