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11 Feb

HOUSE RICH but CASH POOR?

General

Posted by: Lyle Johnson

 

Recently I was referred by a TD branch manager  – a retired couple that was declined for a equity take out as their income was too low to qualify.

They were driving a 20-year-old car, their home needed repairs and they hadn’t been on a vacation in years. It was a classic case of house rich, cash poor.

As the couple was in their 70’s, I immediately thought a CHIP Reverse Mortgage would be suit their needs. After their home was appraised, they were eligible for $100,000 based on the value of their home. They took this money and bought a new car, did some repairs to their home, helped their grandchild with tuition fees,  and took a vacation. With one move, they were able to increase their cash flow, make their home more comfortable, do repairs, enjoy their retirement and help out family.