Mortgage
Plastic card offers a new way to access home equity with reverse mortgage option
– Bloom Financial has launched a new Home Equity Prepaid Mastercard that allows users to use their home equity like a credit card without making any payments until they sell their home.
– The card is linked to a reverse mortgage and does not require monthly payments, unlike traditional home equity lines of credit (HELOCs) and non-prime secured credit cards.
– Bloom Card is registered as a first mortgage and is available in Alberta, B.C., and Ontario, with setup fees of around $2,300 and no annual fee.
– The card allows users to borrow in smaller amounts as needed, potentially saving them money compared to traditional lump sum reverse mortgages.
– While the rates for reverse mortgages are not cheap, Bloom’s rates are competitive with other lenders in the market.
– The Bloom Card offers convenience in terms of accessing funds, with pre-authorized funds instantly available for use.
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