What is a Reverse Mortgage?
It's a financial solution designed for Senior Canadian homeowners
Reverse Mortgage is a form of a loan secured against the equity of the property one owns. The amount of the Mortgage is mainly determined by taking into account the following:
The current Market Value and the Mortgage Balance of the property.
Reverse Mortgage will allow clients to defer payment of the loan until they die, sell, or move out of the home.
How does Reverse Mortgage work?
When you apply for a Reverse Mortgage the amount approved will be given to you on a lump sum. There are no monthly payments on the loan, but the interest is added monthly to the loan balance each month.
The amount of loan will depend on many factors such as the Value and location of the property, Age of the applicants, Current interest rate, etc. A Reverse Mortgage can be set it up for the client to receive such funds as a lump sum, as an annuity, line of credit, or any combination.
Are you a Senior aged 55 and over? If so you may be a good fit for a Reverse Mortgage.
CHIP Reverse Mortgage Quick-Facts and Features
Tax Free Money
The money you receive does not constitute a part of your taxable income, meaning that your Old Age Security (OAS) and Guaranteed Income Supplement (GIS) is not affected.
Maintain Ownership of Your Home
Contrary to popular belief, you will not lose your home with a Canadian reverse mortgage. You'll never be asked to move or sell to repay your CHIP Reverse Mortgage. The requirement is to maintain your property and stay up-to-date with property taxes, fire insurance and condominium or maintenance fees while you live there.
Use The Money Anyway You Wish
A reverse mortgage can help you enjoy your retirement or cover unexpected expenses. Pay for medical bills, upgrade your home, help family and loved ones, travel and pay monthly expenses without depleting your current savings. The only condition is that any outstanding loans secured by your home must be paid out with the proceeds from your CHIP Reverse Mortgage.
Keep All Remaining Home Equity
In many years of experience, 99 out of 100 homeowners have money left over when their CHIP Reverse Mortgage is repaid. And on average, the amount left over is 50% of the value of the home when it is sold.
To qualify you must be a Canadian home owner, 55 years of age or older. The age qualification applies to both you and your spouse. Get up to 55% the value of your home; No credit, no health check and no income needed. Your home must be your primary residence.
No Repayment While Living In your Home
Regular mortgage payments are not required while you or your spouse are living in the home. The full amount only becomes due when you and your spouse no longer live in the home.