The "Living Inheritance": Why a Reverse Mortgage Isn't "Stealing from the Kids"
In our line of work, we’re builders. We build teams, we build safety, and we build a legacy for our families. So, when I sit down with retired first responders to talk about a reverse mortgage, the first thing they usually say is: "Garett, I don't want to leave my kids with a debt. I want them to have the house."
I get it. But let’s look at this through the lens of a tactical debrief. Is it better for your kids to inherit a house 20 years from now, or is it better to help them today while you're still around to see the impact?
The Reality of the "Inheritance Myth"
There’s a common fear that a reverse mortgage "takes the house" away from the heirs. Here’s the "No-BS" reality:
The Kids Still Get the House: Your heirs still inherit the property. They simply have to settle the loan balance—usually by selling the home or refinancing it into their own names.
Equity Remains: On average in Canada, even after years of a reverse mortgage, most homeowners still have 60% or more of the equity left over due to the way Alberta real estate appreciates.
Providing a "Living Inheritance"
I’m seeing more and more Edmonton families use a reverse mortgage for what we call a Living Inheritance. Instead of leaving money in a will, they access their equity now to:
Gift a Down Payment: Help a child or grandchild get into the Edmonton market now, before prices climb higher.
Fund Education: Pay for a grandchild’s university or trade school without draining your monthly pension.
Create Memories: Take the whole family on that "bucket list" trip while you are healthy and mobile enough to enjoy it.
How to Have "The Talk"
If you’re considering this, don't keep it a secret. First responders are straight shooters, and your family should be too.
Explain the "Why": Tell them it’s about your independence. By using your home equity, you aren't relying on them for financial support later in life.
Show the Numbers: I can provide a projection that shows exactly how much equity will likely be left for them in 10 or 20 years.
Invite Them to the Meeting: I’m more than happy to have your adult children join our call or meeting.
Don’t let your wealth sit in the walls of your home while your family needs a boost today.
Want to run the numbers for your family?
Call Garett Martin – TMG | Mortgage Associate
403-915-1025
Book an appointment at
www.MortgageHomesDaily.ca or www.garettmartinmortgages.com