Reverse Mortgage
Unlock the value in your home and enjoy life on your terms!
Wouldn’t it be nice if you had the money to do more of the things you want to do? Your home can be an excellent source of cash to help fund your retirement and the best part is you don’t need to sell your home or take on a mortgage with monthly payments to access the equity in your property. As I broker I work with CHIP (Canadian Home Income Plan) to help you access the equity in your home and live the retirement you have always dreamed of.
A CHIP Home Income Plan could be just what you need. It’s the simple and sensible way to unlock the value in your home and turn it into cash to help you enjoy life on your terms.
Let me introduce you to CHIP – Canada’s leader in reverse mortgages:
A CHIP Home Income Plan is a reverse mortgage secured by the equity in your home. Unlike a traditional mortgage in which you make regular payments to someone else, a reverse mortgage pays you.
The big advantage with CHIP is that you do not have to make any payments – principal or interest – for as long as you or your spouse live in your home. That’s what has made reverse mortgages such a popular solution in Canada, the U.K., the U.S., Australia and other countries.
A CHIP Home Income Plan is designed exclusively for homeowners age 60 and older. This age qualification applies to both you and your spouse.
You can receive up to 40% of the value of your home. The specific amount is based on your age and that of your spouse, the location and type of home you have, and your home’s current appraised value.
You can choose how you want to receive the money. CHIP gives you the option of receiving all the money you’re eligible for in one lump sum advance, or you can take some now and more later, or you can receive planned advances over a set period of time. You can even combine a lump sum advance at the beginning with ongoing advances over time.
You receive the money tax-free. It is not added to your taxable income so it doesn’t affect Old Age Security (OAS) or Guaranteed Income Supplement (GIS) government benefits you may receive.
You can use the money any way you wish. Maybe you want to build up your savings or cover unexpected expenses. Perhaps you want to update your home or help your family without depleting your current savings. The only condition is that any outstanding loans secured by your home must be retired with the proceeds from your CHIP Home Income Plan.
No payments are required while you or your spouse live in your home. The full amount only becomes due when your home is sold, or if you move out.
You maintain ownership and control of your home. You will never be asked to move or sell to repay your CHIP Home Income Plan. All that’s required is that you maintain your property and stay up-to-date with property taxes, fire insurance and condominium or maintenance fees while you live there.
You keep all the equity remaining in your home. In our many years of experience, 99 out of a 100 homeowners have money left over when their CHIP Home Income Plan is repaid. And on average, the amount left over is 50% of the value of the home when it is sold.
Your estate is well protected. We guarantee that the amount to be repaid will never exceed the fair market value of your home at the time it is sold. If your heirs want to keep your home, they can repay the CHIP Home Income Plan from other funds.
You can save on taxes. If you decide to use the money you receive to buy non-registered investments such as GICs and mutual funds, you may be able to deduct the CHIP Home Income Plan interest charges from the income those investments earn. Be sure to consult a financial or tax advisor.
Reverse mortgages are not for everyone, but I would be more than happy to meet with you to determine if a reverse mortgage would be just right for you. Contact Me
Resources
Please take a moment to download and review the documents below. If you still have questions feel free to Contact Me
Reverse Mortgage Brochure – A brief overview of the CHIP product
Do you need to downsize? – See if you can stay in your current home by getting a CHIP mortgage
CHIP mortgage VS a line of credit – Explore the pros and cons of getting a LOC or a CHIP mortgage
