Difficult timesThe loss of a loved one.

Difficult times require sensitivity and understanding. Losing a loved one is the most traumatic and emotional time in anyone’s life.

Life goes on, There will be strong emotions, intermittent fatigue, while still having to cope with daily life and also be responsible for coping with the many details related to a loved one’s life and estate. This is not the time to have to consider a radical change, such as cashing in RRSPs or other savings or selling the family home.

Someone once said, “Grief is reaching out for someone who’s always been there, only to find when you need them the most, one last time, they’re gone.” There is a lot of truth in those words. The death of a loved one is life’s most painful event.

Retaining the Memories

Memories are one of the best legacies that exist after someone loved dies. They should be treasured with family and friends. They may make you laugh or cry. In either case, they are a lasting part of the relationship that you had with a very special person in your life.

Part of retaining those memories is being able to carry on in the place you have called home for perhaps for 30 or 40 years or more, surrounded by the love of family, the neighbourhood/friends infrastructure that would be both painful to give up, moreover unnecessary. This is where Terry Lynch can help out. As as Certified Reverse Mortgage Professional, let me help you to unlock the equity that exists in your home and enable you to continue enjoying the surroundings that you and your loved one have worked so hard to acquire. I can arrange  up to 55% or more (depending on age, property equity) of the property’s appraised value. And there is no re-payment required for the duration of the agreement until you wish to sell the property. Stay in your home until you are ready to leave.  Important to note: the money received from the Reverse Mortgage can be used for whatever your needs are, and is not taxed as income.

During this critical period, many bereaved spouses often make precipitous and potentially dangerous financial decisions out of fear, e.g.

A couple of DON’TS:

DON’T Cash in RRSPs or GICs or other savings instruments!!

This can be both dangerous and very costly for the bereaved, as there may be a withholding tax of 10 or 20% at the time of cash-out, as well as a large tax implication at tax time at the end of the year, as these funds could now be considered earned income and taxed accordingly. I always advise clients that they should talk to their accountant before making any decisions of that nature.

DON’T Sell the family home!!

Given the current housing climate of very strong demand and very meagre supply, there will be many neighbourhood realtors who will be very anxious to get a listing. The Bereaved need to be cautious, and not fall prey to solicitations from sales people who do not necessarily have anyone’s best interests, other than their own, at heart.

That is why a CHIP Reverse Mortgage makes so much sense at times like this. Unlock up to 55% of the appraised value of the property and Stay in your own home!

Some other areas where a CHIP Reverse Mortgage can be used to help family members:

Buying out the family home from siblings

When a family member – a sibling or other relative wishes to purchase the family home from the heirs, a situation that may provoke animosity and suspicion or other difficulties, a CHIP Reverse Mortgage could be used to provide the financing. Terry Lynch would be happy to arrange this. A win-win solution for all.

Outstanding Taxes

After the death of a spouse, it can be quite a shock to discover that deceased’s taxes have not been filed for some time and that a considerable amount may be owed to CRA. Dealing with outstanding Tax Debt requires a team and a plan. Dealing with CRA requires an understanding about how the tax agency works. Our tax system in Canada is extremely complex and Canadians often find themselves in serious problems. I work closely with a team of skilled Tax Auditors, who act as a ‘buffer’ between the client and  the CRA while a re-organization is put in place. Once the CRA has agreed to negotiate, then a plan can be instituted to enable the use of the home’s equity in the property, in the form of a CHIP Reverse Mortgage to satisfy The outstanding tax debt.

Please call Terry Lynch for more information:


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