How a PATH Home Plan makes it easy for clients to purchase new properties

by User Not Found | Dec 18, 2018

The Equitable Bank PATH Home Plan is a reverse mortgage that allows individuals over the age of 55 the ability to release equity from their principal residence – tax and payment free*. PATH mortgage loans provide access to a dependable source of funds that can be used in traditional equity take-out or purchase scenarios.

In addition, a few other important stats to consider:

  • From 2015 to 2021, the number of seniors is projected to exceed the number of children aged 14 and younger for the first time ever, a projection of 9.9 to 10.9 million seniors by 2036
  • Of that population, 41% looking to downsize
  • More specifically, this cohort nicknamed “downsizers” of more than 484,000 seniors age 65+ will be looking to relocate into condos
  • However, a recent CIBC survey found that by age 55, 43% of women and 27% of men lack any type of retirement plan, meaning that the only equity they have is held up within their home.

 

Learn more about the many ways that PATH can help individuals with downsizing, investment goals or early inheritance.

*Full repayment of the mortgage is due at the time the property is sold or transferred, on the date the client defaults, or after the client passes away or moves into a long-term care or retirement facility.

There are numerous ways that the PATH Home Plan can help benefit individuals who qualify:


 

DOWNSIZING

INVESTMENT

EARLY INHERITANCE

DESCRIPTION
  • Clients may want to downsize to a more suitable property
  • Existing property may be sold or rented
  • Financing of new home comes from sale proceeds + PATH + savings
  • Access equity from principal residence to acquire another property
  • Likely reason: generate rental income, build equity, vacation property
  • Note: client(s) must reside in principal residence for > 6 months per year
  • Access equity from principal residence to assist family members acquire a new property

SUBJECT PROPERTY
  • New purchased property
  • Existing property
  • Existing property

REQUIRED DOCUMENTS
  • Property-related expenses for all owned properties (property taxes, condo fees, valid fire insurance)
  • Proof of income (may include rental income)

ADDITIONAL DOCUMENTS
  • Down payment source
  • Agreement of Purchase and Sale (for current property and purchased property)

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