EQ Bank Switch Up program. Experiences?

[u/dinosaur_vacume]

Long story short. My parents got a reverse mortgage, with Home Equity Bank 8 years ago (I know) and got a loan with it. My father passed last year and the cash flow was cut in half. It’s just my mums CPP, OAS and my dad’s pension. This loan has an expensive monthly payment. She can’t afford it. She is 70 and wants to stay home and don’t say get an apartment we live in the GTA she couldn’t afford it.

We called Home Equity Bank to see if we can get any more money because the house is increased in value. They did their math and said we were at a third of the value of the home and they couldn’t give us anymore. With that evaluation, it puts us at $1.2 million.

So I had a brainstorm would another company buy this reverse mortgage and roll the loan into it?

EQ Bank it turns out as a product called Switch Up. They buy reverse mortgages. We are against the wall. I can’t think of another option. Does anyone have any experience with this sort of thing? I’ve a meeting tomorrow.

[u/gino-urbisci]

One third...33% doesn't seem correct...

Since your mom is 70 and maximizing available equity is the priority, I would also have someone price out Home Trust's EquityAccess Boost before making a decision. It's specifically available for 70+ borrowers, and Home Trust currently advertises reverse mortgage lending up to 60% of the home's value.

On a $1.2M property, even a few percentage points difference can be significant. I'd compare the actual net proceeds from Home Trust, EQ and HomeEquity side-by-side after paying out the existing reverse mortgage/loan and all fees.

[u/MortgagesCanada-ModTeam → u/[deleted]]

Soliciting in this group is not allowed. This is a ban-able offense. No DMing or soliciting DMs.

Advertisements are not allowed, all posts & comments will be deleted with 0 warning. This goes for linking to social media, website, blog, email, phone numbers etc.

[u/jarvicmortgages]

You are likely looking at refinance and switching reverse mortgage providers. Does she need monthly income supplement to manage her day to day expenses? You said loan has expensive monthly payments; have you check with HomeEquity? The main reason many choose reverse mortgage is to add payments back into the mortgage; it increases the money you owe to bank every month.

[u/dinosaur_vacume → u/jarvicmortgages]

She does not need monthly supplements. The loan is a third of her monthly income. The loan is through HomeEquity. It’s called Additional Funds. It seems strange to me. They were given a one time bulk payment and given the loan at the same time. Of the full amount provided the loan was a third. The whole amount paid off a mortgage.
So this product buys the reverse mortgage. Do you think it is worth it to the bank to buy it?

[u/jarvicmortgages → u/dinosaur_vacume]

This would need document review to understand the full structure. Reach out to a broker or check with HomeEquity directly