Industry sign banking maryland affidavit of heirship myself
good afternoon and evening ladies and gentlemen it is your host Constantine Polyakov on PRS analogies episode 7 we got the one and only special guest Superman - how do you do Superman - is a regional vice president for Eastern Canada all of us from Canada is there a border road well basically Ontario Ontario East she's the regional vice president for East Eastern Canada for home equity Bank which is gonna be the subject and topic of our conversation today now I'm gonna be quiet for a few and I'm gonna let sue introduce herself once more until it's just a little bit about how she got into the business and you know some of the achievements and things that you've been able to collect over the past few years thank you thank you I've been in the mortgage world for at least 25 years I started as a mortgage rep with one of the national banks moved on into the broker world and was quite a successful broker you know in the mortgage world for quite some time then I moved into management I specialized in creating dynamic producing teams and that's where my heart is these days so this all goes and building the teams yeah it's about building a very dynamic and producing sales team it starts with having a compelling product and compelling story yeah and I've had the great fortune of winning many many awards in the mortgage world I actually served for four years on the board of directors with mortgage professionals Canada oh wow and yeah I had my own brand once upon a time called the mortgage coach coach so you were you coaching other brokers and agents or I was I did have a mentorship where I was mentoring new people to the industry but I also coach clients not only on how to get a mortgage but how to get rid of it okay anybody so fast-forward to 2015 I'm now with home equity bank we have quite a compelling story and quite a compelling product and it's perfectly time I could not agree more well that sounds like quite a set of accomplishments and quite a different palette of I guess jobs in different positions that you've held over the course of last year's and so you really have been more of a sales oriented manager yes so you're you're pretty much past I guess what 10 15 years it was really this in 12 years you really been just kind of ironing out the best of the best the sales team is amongst the mortgage Alliance group and as well as home equity bank and some MPC as well and making sure that I guess and into this am I and all those guys so yeah quite the wealth of experience you just you just being kind you just saying I'm old well actually that's gonna be one of the topics of our conversation today so stay tuned let's talk a little bit more about home equity things so home equity bank is your current is your current employer great and so our schedule work schedule one thing I just catch okay your schedule one thing okay I wasn't sure if I should go there but we did now home equity bank has an interesting pallet of products correct and that's really what separates from equity being from your CI be seized and Scotiabank CDs and all the other guys I mean in fact I you guys really have an entirely different palette of products where I know right we're what you call a mono line bank I'm on a line but yeah what that means is we specialize in one product and we only offer one product and that's a reverse mortgage that's it yeah and that is also going to be a big topic of our discussion so I guess the question really is and this is not just me I bet you're the whole audience is sitting there wondering what that hell is the reverse mortgage ah well it's not that unique it sounds a bit unique but it's not a reverse mortgage is a standard collateral charge so it's the same registered charge as you would get with us yeah BC yeah the only difference yeah forward mortgage the only difference with the reverse mortgage is that payments are not required so the payments are capitalized on to the principle and we get paid out when the property gets sold so the idea is that in a traditional mortgage you'll be paying to it every month so we're trying to bring the balance down after month to eventually have no mortgage correct so there'd be a principal and interest payment amortized over whatever period you analyze whatever you advertise your mortgage for so in our case there's no payment so there's no amortization the payments get capitalized they get added to the principal and so it compounds over the length that you have the mortgage so this is the part that is a little bit tricky so people are sitting there and saying well so eventually eventually I'm gonna have no equity left so how does this eventually eventually there's not however where what we call a traditional equity lender so and we also we have very sophisticated future value chart so we know in Newfoundland Coover or Ontario for example what we think the property will be worth in the years and then we also have very sophisticated actuary charts that's on life expectancy and we put the two on top of each other and we come up with a very conservative loan to value so that's what we're comfortable lending at and so for example our minimum age is 55 okay our maximum loan-to-value is 55% so maybe let's just actually to simplify this a little bit for the audience so okay when you mean loan to value what you mean is the amount of the mortgage mm-hmm versus the value of the home okay let's say hi let's give it hypothetically for example if your home is worth a million dollars okay and we're lending you five hundred mm-hmm that's a fifty percent loan to value so 50 percent and fifty percent low and fifty percent value right now the maximum will go is two fifty five percent uh-huh so although we're building in forty five percent equity and you're only gonna get access to 55 percent if you're older so when I say older I'm saying mid-80s mm-hmm so we guarantee in writing that you will never own more than what the property is worth that's a big guarantee okay Wow so in order to set ourselves up to succeed we are we are here to make money we are conservative in what we lent so for example our average loan is on the books for 11 years but it could be 30 years yeah and because we guarantee you won't owe more than what the property is worth we're conservative in what we get that makes sense well you had to make sure that you can keep your promise correct correct and we we don't want to lose money either well of course I mean if you start doing what the states I guess done back in there to thousands and well that's a good point Constantine because in the States there's over four thousand agents selling reverse mortgages with no regulations whatsoever whoa wait a second how many providers are there for smokers in the states I don't know the number of providers but I do know that there's over 4,000 people offering reverse mortgages and so when you don't have any regulations then you start to get a little aggressive with the loan-to-value land they don't offer the same guarantees we offer and you can get some some trouble you can get you can set some people up to fail and when that happens of course the media jumps on it oh yeah the first time you go Google reverse mortgages you're gonna grab something from the states it didn't go well yeah so we deal a lot in myths and there's a lot of misconceptions out there there's actually probably more inaccurate facts and there actually are accurate facts okay you know what I being your certified mortgage specialist actually I actually do phase at adversity very often you know I was just mentioning to you earlier there was a story where I know the lady simply wasn't you know she was comfortable maybe with me to go ahead with this kind of a product but she wasn't comfortable with the idea that she could not madam how can this be no payments I get it I get it no and one of the biggest objections we get is wait a minute you're gonna give me a bunch of money I'm not gonna make any payments you're gonna charge me interest and you're gonna guarantee at the end of the day I have money or I have equity left I mean I may be old but how stupid I am right so the bottom line is they think it's too good to be true however when you look at a graph on how the principle accrues and capitalizes versus the property value which is the much bigger number it takes eventually they will meet the two of them will meet and they'll actually criss cross but we're talking probably close to 25 30 years in the future down the road yeah well that is where I believe you guys have a really handy tool online we didn't actually punch in some numbers right on the website it's a calculator and you can just get pretty much that visual illustration right that's exactly right that gives you the spread and you can actually see how if your balance does this a little bit over time I mean with equity whatever looking in terms of appreciation equity in Canada Ontario well you know what you can make the model based on anything but we tend to make our models based on two to three percent which is extremely conservative I mean Ontario's been running six percent year-over-year no problem yeah yeah so essentially they do is that it kind of does this on your balance but your equity does the exact same thing and it's a larger number and it kind of gives you a bit of a spread so in fact you're actually more likely to be left with more actually correct and less of a balance and vice-versa correct correct plus it's important to note that for the senior their goal is not accruing equity when you're a first-time buyer the first thing you want is what's my interest rate I want to pay more principal less interest I want to achieve equity for the senior at this point in their life they've already done that there are actually millionaires in a lot of cases they don't even know it right they're living in it and it's really hard to take your bathroom to the grocery store that just doesn't work that way so in but what their goal is today is quality of life yeah the stats are pretty compelling constantin 91% of seniors don't want to move just pause for a minute and think about that think about your parents about your grandparents they don't want to move it's very true they really don't when they did their financial plan back in the 80s all of it was based on a concept of downsizing mmm you're gonna sell the big Scarlett O'Hara house staircase house you're gonna move into a condo sounds good yeah everybody signed up there's a couple of big flaws first they don't want to that's very true yeah second in order for the numbers to work the senior would have to move two or three hours out of their current community so they're leaving their church their shops their friends right all of their infrastructure yeah they don't want to do that either or conversely that I've got to move eight ten twelve fifteen stories into a condo and oh yeah they don't want to do that either so and then the second flaw is nobody anticipated people living as long as they are today back then a financial plan was to 85 years old eight cents that made totally sense at the time 85 85 years old that was an 80s that was back in the all right fast forward to 2017 and the stats are that you have a 52 percent chance to live to ninety two and a half years old so you actually more likely past ninety one of us sitting right here is likely blue 19 we could take some bets so right away there's a seven-year gap for a lot of people in their initial planning right and the biggest fear for anybody is running out of money yeah right outliving your money that scares people it keeps them up at night actually that yeah that's actually very interesting so this is you know that we're talking where are we going back to the slides and now are we sure we can go back to slides if we want to go to slide well actually yeah why don't we go straight to it and talk a little about the opportunities so I guess what I wouldn't to capitalize on is that this is a very niche market this is a very niche product how many other companies in Canada today are doing this just us you're alone you're the only one we're the only game in two ladies gentlemen this is the only game in town so home equity bank is streamlining this product beating all the competition to it and really making a better name for reverse mortgages than the states were able to do correct I think that's we have a much stronger model I mean we're Canadians heaven sakes that's right we're conservative we're safer we want to do things right we want to set people up to succeed and as businesses we want to make money that's right now I wonder how many people out there could guess how long we've been around you know the answer so you're disqualified ha ha ha I wonder how many people out there know that a home equity bank is a 30 year old company oh wow 30 years old another fun fact reverse mortgages are four hundred years old what do you I know four hundred the concept of a reverse mortgage has been around for four hundred years here's the thing though the demographics weren't in our favor for a reverse mortgage to work and be viable you have to have an older clientele you can't do it younger and I guess earlier there really wasn't well now if you look at the baby boomers you look at the demographics just walk down that Street yeah just count the gray hairs hmm you're gonna see that there's more and more people in that demographic so that's awesome news for us but for the people who are in that demographic like myself I know everybody's shocked these people they've got some challenges as well none of it is health that's the great news right that's a great news but here's some challenges a lot of them back in the 80s there was a big push for corporations to have people be contract employees that's right they didn't want the overhead of the pension the benefit etcetera so that's awesome so a lot of these people went out and they become contract employers they become self-employed freelance often working for the same way so yeah nice there's a contractor right it was a great move for the corporation they saved billions of dollars on these benefits but fast forward a couple of years or a couple of decades and now people in their 60s or at least seventies I see where you're going with this are looking to retire yeah that'd be great except they don't have an income no pensions either well there are little attentions with rightfully so that income pension income is missing for a lot of people now in fairness a lot of these people did extremely well so they've saved money but we can quickly do some math even if they saved a million 1.5 million dollars at 65 with a good chance of living into your 90s you can do the math and quickly see that that's not enough money yeah so we've got people who might want to retire or might want lifestyle and are having to live longer I mean right now the average retirement age is close to 70 oh wow I didn't know that in the last couple of years it's gone from 63 years just 70 years no I doubt it I doubt there's people putting up their hands saying I love my job so much I wanna but I want to work another seven years against these are the like a link kind of portion correct that's correct yeah necessity is the mother of invention and plus the fact that people are healthier and able to work longer I kind of think what's happening actually let me just interrupt it for one second so we are already looking at sound the slides on screen for the audience yeah so we kind of covered off a little bit about the opportunity Oh have we not yeah well we look at it and you know what just just a recap a little bit of look like - yeah it's like go and go back to fight yeah yeah some of the numbers are a bit staggering when you look at it 23 percent of seniors struggle with debt so everyone for 125 close to one in every four struggle with death Wow 13% of them retire with the mortgage an 18% are actively looking online and we can talk about our digital strategy later yeah for a financial solution and some of it is debt and debt Scott a bad rap I mean let's think about it for a sec it's expensive to live in Toronto and this is you're talking for eighteen percent of the seniors correct online yeah and that represents 845,000 seniors or I'm looking online first I didn't t
ink they're the men a scene here is online yeah well your grandma's on Facebook for the young alright so when you have a look at these numbers and that's got a bad rap people think okay you're in debt that means you're an over spender your credit seeker you don't have any self-control but that's not necessarily exactly we're talking about people that are living in Toronto on CPP and OAC yeah if they're lucky taking home $15,000 a year let me just pause right there yeah $15,000 a year living in Toronto and their taxes are likely both they could be easily that or a tour knowing that I wasn't pushing I don't pay the tax man that's right the debt we're talking about people just don't have the means just to maintain their lifestyle it's really more or less correct so that opportunities there and if you look at the numbers today there are more people older than 65 then there are younger than 14 so that isn't interesting yeah the funnel is full at the top Wow or at the bottom I should say and and there's less coming in the top so this speaks to the need and and I want to point out right now that it's not the seniors fault we deal with this all the time they've sat at their kitchen table for 40 years lecturing their kids pay off your mortgage that's right don't get into debt and here they are 83 years old looking to go back into a mortgage yeah truth is the cards are stacked against them none of this was known when they were planning their finances they didn't know they're gonna live this long pensions etc and so what they've really done right is looked after this side of their balance sheet yeah they are so equity rich a lot of them are millionaires they don't even know it is so funny when you talk to a senior like that and you say you're a millionaire congratulations you've done a great job look at me is it fun for Marge what are you talking about yeah you know they have a pretty myopic view and they're only looking at one portion of their balance sheet mm-hmm when you look at it holistic Klee they have an opportunity to access their equity to live on it and to give them lifestyle choice opportunity and and we're talking about their mortgage so actually maybe let's talk about it so you guys offer both the income side of it right yes we have two products and the lump sum correct so we have a product that's called income advantage and that is exactly what it says so people can draw down monthly income and not only their supplement what they already have yeah replace what they might not have and then the other way is the traditional chip reverse mortgage and so that's when people take a lump sum or they can do a hybrid they can take a lump sum and some and an income okay so actually rather flexible so if somebody is looking only for let's say let's say an extra thousand dollars just to keep everything balancing yep that's perfect we can look at that yeah and if somebody's looking for more to make their lifestyle work well we could probably look at more to depending on their equity yes and their age correct so so very important yeah okay drivers we have an audience question yeah we do please bring it on all right Harvey molinsky Harvey how are you what makes your product superior to other reverse mortgages well first of all in Canada this is the only reverse mortgage and what makes our product superior to the products that are offered in the state's other reverse mortgage products is our guarantee and our guarantee is that the senior or the homeowner will never own more than what the property is worth so let me repeat that they'll never owe more than what the property is worth so if the market took a nosedive and all of a sudden they owe us four hundred thousand and the property's worth 350 will eat the fifty thousand oh wow that's a big guarantee and so what it does is it protects the senior from anything you know being underwater it's a regular mortgage it doesn't go into their estate their heirs don't pay their there's none of that they retain ownership of the property what they simply do is have access to their equity and don't have to make payments beautiful and you and I both know Harvey we've been in this game a long time we've seen markets go up and down and to make a guarantee like that is pretty sound it's kind of that it's kind of a big deal I mean really in Chile if you're giving that kind of a guarantee you better have deep pockets truth be told Constantin we've only been underwater a handful of times in 30 years that's how how good we are at future value and our actuary charts and how conservative we are so how much home equity Bain has been giving reverse mortgages for 30 years this whole time that's great Wow that is quite a track record and you never so every and it's this guarantee is always been the same it's always been the same now we've not always been a Schedule one bank we became a Schedule one bank in 2009 okay prior to that we were a trust company at one point we were public and when we became a bank it's very important a it gave us credibility but more importantly it gave us access to funds and when we're able to source our own funds it dropped the cost of borrowing which dropped the interest rate so once upon a time we were fairly expensive I do know it's a rather risky products for you being under I mean again it's a very niche market which is what this show is all about today and so being able to come into a market that's oneisha and so special in its own way and being able to take it and just streamline it and be able to probably have a successful track record for so many years very impressively yeah the other thing with being a Schedule one bank is we're monitored by off C so all the same suitability we don't have to do a stress test mmm there's no payments when there's no payments there's no TDS or GDS there's no ratios whatsoever we do ask for income we do pull credit we've got to make sure that the senior can manage their taxes the property insurance and any condominium fees we may have and if they have a bit of a shortfall we just supplement it with a bit of an income advantage we can give them an income advantage as well I think a flexible product I love it I actually I'm kind of the more to learn about it's you know the more a the more a funnel out with the idea in the product I call you a convert look at convert so I've been converted and you know what and I believe that it's so so very important that people know a little bit more about it just so they can make their educated decision whether or not this is something for them their chair whatever for a minute we started off originally as a need lender of last resort you know picture the little old lady with a bucket in her living room because she's got a hole in her roof oh boy not eating well and you know either you get a reverse mortgage or your sell your house and I would say that's probably twenty percent of our business more likely eighteen the lion's share of our business is the want customer because here's a fun fact any money that they take in a reverse mortgage is income tax free do I need to repeat that because it's their principal residence is income tax free so now you take that to a savvy senior and all of a sudden a reverse mortgage is now becoming a financial strategy it makes total sense to take your equity tax-free before you access your savings which has tax implications oh here we go this yeah and plus the fact that it'll bridge your money because remember what I said originally the biggest fear of any senior is running out of money I was reading their money so we've already done the math on how much money was saved to age 85 now they're living longer so this gives them a tax-free bridge if they want it to make their money last longer know the big key is in any kind of investing you never want to collapse the asset that's right so when they're taking equity from their property they're not collapsing the asset it's still appreciating at that two three six percent of them the return correct and so are their savings hmm the minute you collapse or withdraw some of those savings albeit a tenth or twenty percent of it you're collapsing that up you're using the opportunity for it to grow very true now if you listen to anybody they will tell you time money over time with interest equals return mm-hmm but time is a very big factor that's right so if you can extend the investment life of your investment another two three five seven years you get more money you're making money and some of our seniors create incomes we talked about that pension gap mm-hm so we've had people come to us and they'll take a lump sum maybe they'll take four or five hundred thousand and they'll go buy a condominium or oh so they sarchie reinvest right and because there's no payments aside from the condominium fees and the taxes the rest becomes income hmm no that sounds like a pretty good idea that's a very nice layout yeah pretty good out yet so we find all kinds of opportunities that way your give me all kinds of ideas right now again no no you've got three sizes you got your own asset growing you've got the the investment property you've got growing and your investments are still you've not collapsed any of those asks that is amazing that is amazing and so here's another powerful thing anytime you want me to stop talking you're gonna have to kick me because I get pretty excited about this but now what's happening remember we said that downsizing was flawed yeah not everybody was going through crack they gotta move up or they have to know about the numbers doesn't work so now what people are doing is they're using a reverse mortgage to downsize so you sell your property let's say you know you sell it for 800,000 you want to buy a property in the same community hmm you're not getting it for two or three thousand we all know that so maybe you need four or five thousand you take a reverse mortgage on the purchase depending on what you qualify for it you're gonna increase your purchase power from anywhere up to fifty five percent and so the numbers now work you can stay in your clusters I get it yeah because there's no payments that's the magic of it and that's really the only uni so you can even pretty you can purchase with the to certain it's not necessarily a way of just accessing your equity in a home if you are looking to downsize hey well how about a downsize with no payments right and I was mentioning to you before the show I was at a presentation last year put on by mortgage professionals Canada and they had a member of tread on the panel mm-hmm and he was indicating somebody was asking him do we have a supply demand is there a bubble that whole conversation and he said you know he didn't say this but in essence he said it's the seniors that are the problem there's over the age of 55 at that time there was a hundred and eighty nine thousand people in the TREB catch area that owned homes all of them they had expected to downsize at some point maybe already and they don't want to move so they're not moving and they can't afford to stay in their community so if people were to start to use the reverse mortgage in purchasing they could downsize because let's face it at some point some of these homes are too big for them to make well yeah yeah kind of kind of tight right right so that's become a properties proper popular strategy as well yeah no that makes quite a bit of sense Oh rolling bring him on so again from Harvey molinsky okay would be good if you can give an actual example of real life situation ie a 16 year 10 a 68 year old with a condo no debt condo is worth 800 K today how does the reverse work and I believe the follow-up is what is the maximum that one can take on 800 that you're buying a hundred thousand dollars of a condo okay so remember how we're reversed right yeah it's like Michael Jackson we work in Reverse sucking back so the value of the property is less important than the age sixty eight is the key in that equation so 68 is a young senior to us so we probably and we'd have to put in the exact birthdate and the postal code to get the right formula but roughly somewhere around 30 33 percent would probably be a good guess one-third roughly yeah yeah I might be a little ambitious but somewhere in that neighborhood on the 800,000 and it's on an appraised value and so that doesn't change when we approve alone we approve it for life it's never reproached one spouse dies you know you go back to your bank they say I'm sorry you don't you don't qualify for this line of credit anymore talk about a bad day we don't do that so you're approved for life and as a matter of fact you can come back to us and get more money because your property's gonna appreciate and you're gonna get older beautiful so you qualify for more so fast forward that 68 year old you know they may let's say we're gonna give 25% for easy math okay that's 200,000 on that 800 and in a couple years it could be more and it could be more so that's how that'll work now if that senior were well into their 80s where we'll maybe giving the 50% mark so that 800,000 condo now they could free up four hundred thousand yeah remember no payments and they can go do what they want we as long as it's legal they can do anything and what a lot of people are doing are giving what's called a living inheritance right so with the new mortgage rules we all know that if you purchase a property of a million dollars or more we also know that the average household price in Toronto is 1.2 that's right that's for a semi sorry my generation has to fight the adversity there correct so you know if we look at that they need at least 20% down payment yes matter if they're first-time buyer or not so that is steep and what used to happen is they go to the bank of mum and dad or the bank of Grandma and Grandpa and ask for a gift that's right now I put it in air quotes because it's a gift wink wink can you pay me back when you can yeah of course often they would take it from their line of credit which would create payments now what's happening people have started to figure this out so they go to the bank and mum and dad and say forget going with a line of credit with payments get a reverse mortgage you don't make payments I don't make payments I can buy my 1.2 million dollar semi and I qualify now you're gonna give me that money anyway yeah yeah at some point yeah that's a great that's a great way for the parents to avoid the extra liabilities correct and you know what there's no badge of honor to wait till you've passed to give you a legacy more and more people are thoroughly enjoying watching their children or their grandchildren enjoy their home and their inheritance their family and we had a we had a customer and he had two grandchildren and he came to us he wanted two hundred thousand in the reverse mortgage and he wanted to pay for his granddaughters medical education in Oxford UK they wanted to pay for his grandsons legal education in Australia that's how it's very expensive was about a hundred thousand each Wow however he is so proud of the fact that he's been able to give them this gift well of course yeah that's it when they start their education as opposed to well okay I'm dead and gone here's some money now you can pay off part of your student loan yeah so and everybody's thrilled it's a win-win-win oh yeah I mean as a parent what's the greater reward than what your kids succeed and do well in life and if you can give them that a little bit extra boost and it's not affecting you or alone livlihood well what the hell why not right right really intense listen that this is all really really good so thank you Harvey for tuning in and giving us some really awesome questions why don't we take a step back to our show Bible and just see what we have left here on our list what we were going to go into next after talking about home equity Bank and reverse mortgage and how long as it's been around we weren't going to talk a little more about the demographics and a little bit more about the presentation that you have so we spoke a little bit about how you know this is growing product this is a growing market because again a lot more seniors are becoming of age now where they're they could really really use this type of a product and so why don't we
ven go a little bit back to our slideshow and which like would you like to go back to - well the I don't have a slide for this but I wanted to make a couple of points okay and and the numbers speak for themselves so it's fine for me to sit here and be a talking head and tell you how great this is and how people are buying in etc but as a company last year alone we grew at 35 percent 25 percent is pretty staggering it's pretty big deal I mean if you be a banker been around for 30 years and you're going 35 percent in 2017 correct and we're on tap to do exactly the same growth this year and just to give you some idea of how big this it could be a problem it could be an opportunity depends on what side of the fence you're sitting on is so far this year we've had seventy thousand inquiries for reverse mortgage about reverse mortgages on line earth okay so we have a traditional media strategy with a commercial alright we also have a very big digital presence so 90% of our inquiries come in digitally oh wow 10% come through the traditional media now the traditional media will convert better so we will close more than you do did Julie it's really easy to ask questions anonymously online but you know my point is we get anywhere between five and seven thousand inquiries a month Wow so this just speaks to people looking for solutions looking for alternatives wanting to find out more biggest objection as people think it's too good to be true yeah okay myself where's the catch yeah where's the catch exactly right seventy thousand Jesus Craig that's a lot of business that's a lot of business and I'm gonna get it's only gonna pick up right so I think you were showing us a little bit more in the earlier slide that from right now the demographic being about 18% of all Canadians yeah being that that group that qualifies for the reverse product right in the next ten years to 13 years we're talking how much almost thirty to forty percent yes yeah that's every every one in three people that you're gonna be talking to I don't care about mortgages let's talk about just in general whether you're a physiotherapist or whether you're a dentist or whether you are a broker real estate mortgage whatever the hell you're doing one in three people in the next ten years will be a senior just think about that it's a huge opportunity and what comes with it is a lot of services yeah and none of it's cheap oh yeah and you know what we're not talking about it but there's actually a much bigger problem than money hmm and I deal with seniors all day long and I asked them what gets in the way of you having the retirement you dreamed of or the retirement do you want and I'm a banker so you'd think they'd say money because that's why they're talking to me but not one person yet has ever said money can you guess what they say oh correct they all say health and mobility so the good news is we're living longer the good news is we're healthier like more mobile but the truth of the matter is is if we live long enough eventually we're going to have health issues oh yeah the stats say at eighty one point seven years of age is when the average person starts to have health issues a lot of them I guess correct a lot more than so the bigger problem is health and what we what our seniors say if I live long enough I'm gonna have that big problem so I'm gonna do what I can to empower myself yeah to have the retirement that I want now and that's gonna require me accessing some of my equity so be it well I mean again that's a little bit of a stretch in age of 55 60 65 to the age of 81 I mean if you're living on the very bare minimum it's very hard to maintain a good you know standard of living where you are actually doing good things for your health correct and you're taking care of yourself you are going to see the physiotherapist and you are getting certain things that could just simply make you feel better right correct vile and back you know back when we're talking there again their financial plans done back in the 80s people didn't people look at their parents when they look at their grandparents and you know what they're stiff they're not moving around as much their knees their back whatever never in their wildest dreams that they think they'd be as active as they actually are it could be right Oh actually you were talking to me earlier that you are also baby boomer right I am I am the demographic you're a part of the demographic and you were telling me you climb Mount Everest not Mount Everest no never is base camp I never is base camp well it's still April of this year I climbed Mount Everest base camp as a matter of fact I ran my first half marathon the age of 60 did myself Wow a couple of months ago and oh there I am there's one of the pictures of me at base camp that's right um yeah that was pretty spectacular it's quite a grueling hike and it's all up because it is a mountain after all and it is Everest but yeah and did you ever this was your childhood dream well it's been some family is a pretty mesmerizing thing and it's quite magnetic oh you've got all the active pictures going on here at Brandon that's right yeah so it's something that you know I never thought was possible to start with and I thought the ship had pretty much sails but you know what if not now when they listening the thing is that I guess you know what more people should be looking at things that same in that same perspective I mean ultimately if you got the health for it then money really just a number and you have ways so accessing that money just go enjoy life right yeah go for it have the life you envisioned take advantage of what you have and to though those to all those intrapreneurial and minded guys this is so so very important I mean you know we spoke about with opportunities and different markets that are emerging this is a very very hot topic during the next ten years so pay attention and make sure you make the best of it I think sue will agree yeah that that's very very true so we talked a little bit more about that so you know what the very interesting part about home equity being this is something that was very staggering from the data that you showed me so far so you told me that you get quite a volume of requests online from seniors correct correct so I just casually said your grandmother's on Facebook and that's not a joke it's absolutely true you know it's so funny because when we started to revisit it on our marketing strategy you know one of the mindsets was seniors are not online forget it I'm not gonna aunt no no no no no no thank goodness we didn't listen to any of that we went big online hmm and yes seniors are online and especially with this product and especially when it comes to financing people are private they want to do the research in private yep they don't want to make a fool of themselves they want to be informed mm-hm so that's I mean it's commonplace now what do you do when you want to find out something you google it it's become mainstream and so lots of seniors her online way more than you everything and so can we just quickly bring up the Facebook and all the other pages you guys have over 5,000 followers in facebook right we have a very strong digital strategy strategy also something that is a vital forms Twitter Facebook Instagram you name I think centum financial it has 3,000 followers I mean they've only really been putting the work in this year but like this is a very nice brand and you guys are doing a hell of a job I think at popularizing it and getting the people to actually pay attention big storytellers because you know really it's about the people and it's about the impact right and so what is this money done for people we look at elver and I invite anybody to go to our web page chip Todd see a rose around browse around have a look at the stories also on LinkedIn and we encourage people to share yes how this has you know empowered them changed their life we we have all kinds of stories right from you know the one of my reps had a went to see one of the customers in her home and on a bureau she had a wine bottle in my rep said oh I like wine isn't that nice and you know the the senior said oh yeah I used to and she said actually there's just colored water in that bottle I haven't been able to afford a bottle wine boys oh my god so when you hear a story like that and of course know the rap at the end of the day bought her bottle wine of course but when you hear about that small pleasure to the other client we had who you know wanted to reduce his workweek hmm but had a company and he had a million dollar operating line on his company and it was costing him six or seven thousand a month to service it so he couldn't cut his work week back you know he had lots of money went to his financial planners financial planner said well there's a smarter way for us to pay that line of credit off so you can cut your work week back it's called reverse mortgage in the guy way I don't reverse mortgage I've got lots of money just give me a million dollars the planner said okay but you know with your tax implication I'm gonna have to cash out one and a half million oh boy why don't you consider your tax-free strategy at first so you know what he thought about it and we educated him and you know he went from I don't want it to okay how much were you giving so you know you had a really nice expensive property on the lake and so we ended up approving him for I think it was one and a half million dollars Wow he paid off his line of credit cut back his work week then he took the rest of it and butter vacation property in Europe wow that is incredible so it's all about leveraging your money and lifestyle and choice and he's getting income renting out his vacation property is kind of workweek back he's got tax-free money so it was a pretty it was a pretty nice solution that's that is quite incredible and what I'm also gonna point out it seems like you guys are doing quite a bit of community work where you guys are reaching out to yeah that's the other important thing is if you're going to attract seniors especially digitally you've got to become a resource you've got to become a place that they will go for valuable information and things that have nothing to do with your product of course right it can't all be about you when you give back to the community and you give them somewhere to go to research uh-huh then they start to trust you this is the zoomer show and it's funny I did a little Zumba demonstration at Mizzou a show just last month so again what Zumba got to do is reverse more nothing nothing but it's got a lot to do with seniors and have any program trying to make a not yeah and you know what I think you guys did a great job I mean you're a great ambassador of the product I believe and I also think you guys had an actual brand ambassador that you guys all did earlier - yeah we do Kurt Browning is our spokesperson that's the skater correct yeah and so the interesting thing is you know we did a lot of blind surveying market survey to find out who resonated with people because there's so much misconception about reverse mortgages and how you know private and its financial it's important to have a spokesperson oh yeah that gives it credibility and also you know in some ways gives the senior permission to step in and so Kirk won our popularity contest with that and he's been a great ambassador for us I think you know it's a fun fact that he never did win a medal Oh Don Johnson did by the way but Kirk didn't but he's been a fan favorite forever everybody's I used to watching there's no way I would fall oh well you watch I mean we all develop certain attachment to our heroes that whether it be from I mean again people from racing Heritage's yourself and and you know people who are trying to do good for the sport and for the community and for the country out there right the world in the world stages right so that's actually quite and quite incredible I really like the fact that you guys have a brand ambassador and I think more companies should be trying to do that because but it really gives a face to your to your brand right and they're really kind of good anchors it yeah it gives a little bit more resonance to it and you kind of feel like there is a little bit more to that just the the service the trans the product there is a little bit more a relationship here between the brand being not just a big company big corporation there's a face that's associated right it has a little bit more persona with it with a little bit with the population speaking about that it internationally it's an interesting thing that some countries don't they all have reverse mortgages huh but they don't call it that so for example in Korea they don't call it a reverse mortgage they call it a house pension a house pension I love that you get attention from your nose in Hong Kong the government is sponsoring what they call mini movies okay and so they have I watched it it was about 15 minute movie on young Asian families giving what they call housekeeping money to their parents and grandparents okay to help them keep their lifestyle and what was happening is they weren't consuming they weren't buying couches and cars and all kinds of things and so the government has stepped in and is sponsoring some of these mini movies about reverse mortgages to say you know what there might be a better ways is in Hong Kong isn't Hong Kong there might be a better way for you to look after your family it's a very interesting and so to us as a company we thought there were certain nationalities or demographic cultures that would not be open to this product whatsoever when in fact educated properly tax-free financial manager they're gobbling it up and thereby okay I have three kids I got to buy a condo for each of them and I'm gonna create in common create legacy and I'm gonna buy place now we're creative with that and you got enough equity I mean it's all about leverage right like we said about knowing what your options are right so it's important that the product be positioned in the proper way yeah it's important that you understand that the seniors goal is totally different than the first-time buyer they are not trying to accumulate equity it's not gonna give them anything right through they're looking for lifestyle and choice and then it's also important to understand that there's other factors going on in the background right there's some stigma like I said they sat at the kitchen table lecturing their kids so there's some stigma involved there's a lot of pride oh yeah and so and you just have to take some time and educate and normalize the process so the customer understands and not alone yeah it's not their fault they've not done anything wrong and then give them the opportunity to to come up with a solution beautiful but this is this is very very good information I think for everybody I don't think I think the people just know enough about it really quite frankly every time you speak to somebody you mentioned reverse mortgages they go what reverse what huh how does that make any sense right so I think this was an excellent description of what the circus does I'm gonna probably wrap up our interview just shortly after the following question okay so being the Sherry's long walks in the park bidding has showed that geared towards you know entrepreneurs and people starting businesses and trying to understand the markets that are not very maybe not very much known and not very well exposed I think that today we had quite a great expression of quite a quite a bit of a I guess a landscape painted by sue in terms of what's available out there on the mortgage market but what I wanted to go into just once more to just recap is you're our initial topic being the demographic in Canada how it's changing so rapidly right now everybody should really be trying to pay attention to what's what's going on with that because that is going to make such an impact on everybody's businesses in the next ten years and if you're not geared towards on tending that senior market is a big chunk of your business no matter who you are you are going to be behind correct you're going to be 100% and I atrophy we always like to have our guests you maybe a couple of tips to some
ody who is trying to approach the market that we're discussing today being the senior market right and somebody who is trying to enter just the senior market for whatever services and products they're gonna be with given your experience and knowledge about the service of the products you guys provide what a couple of tip CK's could give them just to kind of not you know not burn themselves too early on - okay well the first tip I would I would give is to get involved you've got to get involved and the best way to get involved the easiest way to get involved is social media start sharing posts follow us follow us on the different social medias you don't have to create content just reposed our content that's great use it secondly do some homework do some research find out about the demographic and what their needs are mm-hmm and then give them something give them a resource give them good quality information give them something and things are not always as they appear I'll just close with a little story about seniors and now you think they're one way and they're really not that way and it's about the the senior gentleman that goes to his doctor and he wants to help his wife with her healing problem and so he says to his doctor my wife's got a hearing problem I want to help her and the doctor says we'll just slow down a minute let's do a little experiment to find out how bad her hearing actually is okay well that makes sense and so the doctor says you know what next time your wife has her back to you stand about 20 feet back and ask her a question and if you don't get a response move five feet closer asked her the same question another five feet until you get an answer and then we'll have an idea how bad her hearing is okay so he's very excited he's got something to work on a project and he goes home he walks into the kitchen his wife's it does preparing dinner she's about 20 feet away perfect he says honey what's for dinner you didn't get her response so he moves five feet closer he says honey what's for dinner still no response he does it two more times now he's five feet away from her he says honey what's for dinner and she turns to him and she says for the fourth time Harold it's pot roast so I guess I guess the moral is pay attention pay attention things are not always as they seem these are not old people these are these are active smart people I love that that was that was actually quite quite an ending so thank you so much this was your one and only soup you meant Oh home equity Bank with us today thank you so much for coming thank you sir a real slice I realize I'm your host as always constant pull off please make sure to follow like and share this stream as well as home equity bank and the pocket broker right at the bottom on the screen as well guys thank you so much for tuning in have a wonderful evening and I will see you in two weeks at episode eight have a great day good night thank you for watching that was the iris analogies and we hope to see you in two weeks when we get to shoot yet another episode of this show meanwhile you should probably like share and follow all of our social media accounts that would be Facebook Instagram and YouTube where we will be posting a slightly better version of this exact same episode see you soon bye what are you doing here who is producing the show
