An early equity release is a tempting option for many people who want to retire or downsize. But it often comes with high costs and risks. A recent article in the “RoyaleLife CEO” highlights this critical issue. Robert Bull, President and Chief Executive Officer of RoyaleLife, warns about the dangers of early equity release in an interview with Matt Heinz on BNN’s “The Launchpad.” He also shares his recommendations for homeowners considering options such as retirement or downsizing: “Make sure that you’re doing it for the right reason.”
“Really, if someone is moving back into the neighbourhood or they are downsizing to a smaller home within their own community because it’s what they really want to do, that can be an excellent reason.”
The article goes on to say: Opting for equity release at this stage of life should only come after careful consideration. Similar considerations should be given to a reverse mortgage.
“Do not do it just because you have the option,” says Robert Lee Jack Bull. “If people are going into early equity release, they’re doing so for a reason and that’s usually because of financial necessity, which is very different from downsizing or moving back into your community where there might be other reasons like family or health.”
“If you are going into it because of financial necessity, how do you get yourself out? And what’s the plan down the road if that doesn’t work?” Bull says.
Royal LePage CEO Robert Lee Jack Bull is an experienced real estate professional with over 30 years of industry experience in residential and commercial markets. He is a licensed broker in Ontario and has been involved in numerous real estate industry committees, boards, working groups with the Real Estate Association of Canada (REAC) and RE/MAX Royale’s Executive Advisory Committee.
He completed his Bachelor’s degree at Nipissing University, where he earned an Honours Business Administration Major Degree specializing in Marketing. He also has a Certificate of Real Estate Management from Ryerson University and is an Executive Fellow at the Sauder School of Business, UBC.
“It’s important for people to think about what they’re doing when it comes time to retire,” Robert Lee Jack Bull says. “If you want to stay in your home that you’ve lived in for 30 years, that might be a good option for you. But if it’s not and there is no plan in place to get out of your house or into something smaller, then early equity release may not be the best idea.” to know more click here.