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November 15th, 2011
Several weeks ago, I wrote a blog entry that I titled “The Top 4 Myths of Reversible Mortgages in Canada.” As the weeks have progressed since, I think it might be time to change that title to “Unlimited Myths of Reversible Mortgages!” Heavens, there is a great deal of mis-information out there on what is actually a very sound, secure and smart decision for my clients everywhere in Canada!
Case in point: A couple days ago, a wonderful couple met with me to discuss their options for a CHIP Reverse Mortgage. They told me that another financial “advisor,” had told them that the Reverse Mortgage took ALL the estimated equity of their home, which would leave them nothing for their estate and children’s inheritance. This is a MYTH!
The CHIP Reverse Mortgage understands that you’ve devoted years of your life to your “nest egg” of a home. For this very reason, the CHIP set up ceiling limits on what amounts can be borrowed in a Reverse Mortgage.
Most of my clients (55 or older), receive approximately 25-30% of the home’s equity in their Reverse Mortgage. If you are 70 years of age or older, you might qualify for as much as 40%, but you also have the option of taking less, of course. In fact, based on your age, CHIP can go as high as 50% of the appraised value of your home.
If your home value continues to rise …
After taking your Reverse Mortgage, your home’s value is likely to continue to rise. When the time comes to sell the home (either via your decision to move elsewhere, or if you’ve passed on), the Reverse Mortgage is paid off based on the ORIGINAL determined amount, plus interest accrued over the time the money has been borrowed. So, while an average 25-40% of the home’s equity at the time of the Reverse Mortgage going into effect is used to pay back the reverse mortgage plus interest if your home continues to appreciate in value the remaining equity is all yours to keep.
What happens if your home’s value falls?
Here’s another win for you: CHIP guarantees that your Reverse Mortgage loan balance will never exceed your home’s market value. This is a tried and true rule, whether your home’s value stays “flat” or dips downward.
With this CHIP guarantee, your heirs are assured of NOT being saddled with an unexpected debt.
Hundreds of Canadians are taking advantage of the CHIP Reverse Mortgage. It’s as simple as calling me toll-free at (866) 223-1794 for an absolutely free, no-obligation consultation with me. Feel free to peruse our Frequently Asked Questions at your leisure, too.
Let’s put the numbers to paper and give you the freeing financial options you deserve!
@Darlene Vilas, Canada’s leading Reverse Mortgage Specialist, www.ReverseMortgageAdvantage.ca
Tags: CHIP, home equity for heirs, reverse mortgage, reverse mortgage and estate rules, reverse mortgage and inheritance, reverse mortgage senior citizens
November 8th, 2011
There’s one thing to be said about making a decision to move out of your home because you want to downsize or you wish to live in a different neighborhood or community.
But when money gets tight, some senior citizens look to selling or renting their home to make ends meet. While this may seem a very viable (and traditional) option, it certainly doesn’t say much for the financial worry-free lifestyle you hoped and expected to have in your golden years.
Don’t sell or rent because you feel there’s no better option. There IS a better answer. It’s a CHIP Reverse Mortgage.
With a CHIP Reverse Mortgage, you’re able to effectively free up hundreds to thousands of dollars monthly by borrowing against the equity in your home WITHOUT having to take on a second mortgage or a more restrictive line of credit. For senior citizens (55+), a reverse mortgage can be easily set up, “reversing” the payment stream – there are no monthly payments to make on this mortgage ever.
That’s right! Neither you nor your spouse needs to make repayments regularly as your equity provides the required security against your reverse mortgage. When you do make a decision to sell, the proceeds of your home’s sale pay off the Reverse Mortgage.
And, better yet – you’re able to stay in your home!
Feel free to peruse other Frequently Asked Questions my clients have asked when they first came to me about setting up a reverse mortgage in Canada.
You might also want to check out my blog article, “The Top 4 Myths of Reversible Mortgages in Canada” for more information on the CHIP reverse mortgage framework.
At any time, you’re welcome to call me, toll-free at (866) 233-1794 for a free, no-obligation consultation about your financial options with a Reverse Mortgage.
@Darlene Vilas, Canada’s leading Reverse Mortgage Specialist, www.ReverseMortgageAdvantage.ca
Tags: CHIP, mortgage help senior citizen, reverse mortgage, sell vs. rent home, senior selling home
October 30th, 2011
More and more calls are coming in to me from clients about the options they have with a CHIP Reverse Mortgage. I enjoy talking with each and every one of you as you each bring a bit of a different scenario to the table. (And if you haven’t called me yet, pick up the phone any time and dial (866) 233-1794, to learn more about what a Reverse Mortgage is.
The CHIP Reverse Mortgage is one of the simplest concepts in the world:
As a senior, you’re allowed to receive new funds based on the equity of your home. The calculation for the percentage of equity you receive is based on a few factors, namely your age, and your home’s appraised value.
Your credit rating is never a consideration for the awarding of the Reverse Mortgage, and existing debt is not an issue at all either as we do not do a credit check for this application. (For more details on existing debt, see my blog entry: Can you apply with existing mortgage debt?
Here’s where most people are confused about Reverse Mortgages:
The CHIP Reverse Mortgage is a non-recourse loan, meaning that the lender can only be repaid on the loan from the proceeds of the sale of the property either when you decide to sell your home or your estate sells the property. Your Reverse Mortgage is not a “loan” that can be “called” at the lender’s whim. This fact, alone, provides so much security and relief to my clients!
Either you, yourself, make the decision to sell, or the home will be sold through your estate to pay off the Reverse Mortgage when you and/or your spouse on title pass away. There is another option too whereby children can pay off the reverse mortgage through their own means to the estate and keep the property without the need to sell it. Reverse mortgages can be paid off at any time – just like a traditional mortgage some penalties may apply so it is best to call and find out if you are looking to repay the mortgage in full.
Further, the CHIP Reverse Mortgage allows for payments to you on a monthly basis but most of my clients choose not to make any payments. The interest rate can be fixed. CHIP offers 1 year, 3 year, and 5 year terms as well as a 6 month term and the rate is set at the time the Reverse Mortgage is drawn up after which time it would reset for the new term at the current rates. Clients can choose a variable rate as well.
Yes, I know – most people calling me think the Reverse Mortgage might be too good to be true!
After working for several years as Canada’s leading Reverse Mortgage Specialist, I can assure you that this a sound and solid option to give our respected clients the lifestyle they deserve. There are no hidden trapdoors or surprises.
Feel free to call me at your earliest convenience, toll-free, at (866) 233-1794 to discuss any questions you might have about CHIP Reverse Mortgage information. As I’ve noted, your call is absolutely free, and you are under no obligation.
I’ll look forward to speaking with you!
@Darlene Vilas, Canada’s leading Reverse Mortgage Specialist, www.ReverseMortgageAdvantage.ca
Tags: CHIP, loan options for seniors, loans for seniors, reverse mortgage
October 19th, 2011
The other day, a gentleman called me with questions about the CHIP Reverse Mortgage option. His first question was a unique one, and it has to do with the myths around reverse mortgages … in fact, I’ll have to add this to my “Top 4 Myths About Reverse Mortgages column!
He was not “cash poor,” and he was not a senior citizen with seriously diminished funds. He and his wife actually felt comfortable in their lifestyle, but had just come up against an unexpected (and surprisingly high) financial expense with BOTH of their cars. He was facing a “sudden debt” issue and was looking for options outside of dipping into reserved retirement funds.
I assured him – as I’ll assure all of you out there – he can “qualify” for a reverse mortgage, which awards funding based on the equity of your home, which will give him access to home equity without impeding his retirement lifestyle.
In his scenario, the CHIP reverse mortgage was the perfect fit. Both he and his wife were active golfers and love to travel. They did not want to give up their retirement plans, by having to make monthly car payments. Instead, they chose to use a small amount of their home equity, with the flexibility of never having to make a payment until they sell or move.
Granted, many seniors over the age of 55 come to me with long-term financial stress issues. Others have applied for and been rejected for riskier credit lines or loans. And some people just want to live more freely with less financial worry by having financial funds readily available. In just about every single case, I’ve been able to help them with a CHIP reverse mortgage.
With a reverse mortgage, you no longer have to make mortgage payments.
When you put a reversible mortgage in place, you no longer are required to make regular mortgage payments to your lender – you can, of course, make payments, but you are not required to do so. You are charged interest only on the proceeds you choose to access and the remaining balance is available to use in the future (as a line of credit).
If you’re 55 or older, the CHIP reverse mortgage is a definite solution you’re going to want to explore. Just call me direct at (866) 223-1794 for a free, no-obligation consultation to discuss your reversible mortgage options or, simply fill out our Online Estimate Request and I’ll send you your no obligation estimate with the CHIP Home Income Plan Guide.
@Darlene Vilas, Canada’s leading Reverse Mortgage Specialist, www.ReverseMortgageAdvantage.ca
Tags: options for sudden debt, retirement funds, reverse mortgage, reverse mortgage for senior citizens, senior citizen high expenses
October 11th, 2011
Today, a lovely lady came to me just after celebrating her 68th birthday … but she wasn’t in much of a mood to celebrate.
Over the last four years, she had experienced more financial loss than the sum total of 40 years prior. Investments had significantly fallen off; inflation was slyly affecting her Old Age Security and Canada Pension Plan; and some health issues between her and her late husband had created some unexpected debt.
She had tried to qualify for a line of credit from her bank, but was turned down for various “risk factors.” She wasn’t sure where she could turn.
I’m so glad she found me.
Over the phone, we were able to approve her for the perfect financial solution, that had, until today, seemed completely out of reach. Best of all, she was approved in the comfort of her home, she didn’t even need to set-up an appointment!
With the CHIP (Canadian Home Income Plan), she was approved to receive a Reverse Mortgage Loan, funding 40% of the existing equity in her home, which is exactly like a line of credit. She decided to only take 20% of the proceeds….and the remaining 20% of the approved reverse mortgage was set-up exactly like a line of credit, to be used in the future, if and when she chooses!
Now, while the percentage of funding approval depends on your age and the appraised value of your home, you are guaranteed at least 30% of your home’s equity…and unlike the banks, CHIP reverse mortgages do not care about your credit score as you are under no obligation to make any payments, until you sell your home or pass away.
For me, the reward is hearing how my client’s lives change. With the CHIP reverse mortgage, clients are able to access their home equity, exactly like they would with a line of credit, usually within 10 days of calling! CHIP has the most flexible payment schedule in Canada. This allows clients to travel, renovate, help their grandchildren or invest to supplement retirement income – knowing their home is an appreciating asset.
If you’re 55 or older, the CHIP reverse mortgage is a definite solution you’re going to want to explore. Just call me direct at (866) 223-1794 for a free, no-obligation consultation to discuss your reversible mortgage options or, simply fill out our Online Estimate Request and I’ll send you your no obligation estimate with the CHIP Home Income Plan Guide.
@Darlene Vilas, Canada’s leading Reverse Mortgage Specialist, www.ReverseMortgageAdvantage.ca
Tags: home loan with poor credit, loans for seniors, reverse mortgage for seniors, senior citizen poor credit
September 28th, 2011
Imagine the feeling of relief when you’re able to free up money for your senior lifestyle!
Many individuals and couples find their way to me while researching the option of taking out a line of credit against the equity in their home. After our frank discussions and comparing the numbers, they commonly find that the CHIP Home Income Plan is a significantly better idea!
Taking out a line of credit can be risky for seniors, particularly as the credit line is:
- Set on a variable rate;
- Is a loan that is call-able; and
- Creates the potential of maxing out your Loan-to-Value ratio (what we commonly refer to as “LTV”) with compounding payments.
CHIP is a unique solution for homeowners over the age of 55.
Through the CHIP (Canadian Home Income Plan) “Reverse Mortgage” option, my clients are able to unlock up to 50% of their home equity based on their age and home value.
Even better, they find that they’re putting themselves at much less risk with NO payments and the guarantee they will never owe more than their home is worth.
If you’re ready for less stress, less worry and less activity around “counting pennies,” call me today for a free, no-obligation consultation at (866) 233-1794 to discuss the CHP Reverse Mortgage fit for you!
@Darlene Vilas, Canada’s leading Reverse Mortgage Specialist, www.ReverseMortgageAdvantage.ca
Tags: CHIP, home equity line of credit, mortgage line of credit, mortgage options seniors, reverse mortgage
September 22nd, 2011
One of the most common questions I receive from seniors exploring the option of a Reverse Mortgage in Canada is this: Can you apply for a reverse mortgage if you have a small line of credit or still possess an existing mortgage?
My Answer: Absolutely Yes!
Most seniors who apply for reverse mortgages in Canada are still paying off some level of debt and, in fact, they often use the proceeds from the reverse mortgage to completely pay off these outstanding debts.
The caveat is this: The application process is perfectly acceptable as long as the amount owing is small enough that the CHP reverse mortgage can pay off that outstanding balance. For example: A homeowner with an existing traditional mortgage of $100,000, would need to be approved for a CHIP reverse mortgage of $100,000 or more, in order to pay off their existing mortgage.
How Much do I qualify for?
Here at www.ReverseMorgtageAdvantage.ca we help clients quickly calculate how much they qualify for. If you are 55 years old or older (and your spouse, if applicable) simply fill out our Online Estimate Request and I’ll send you your no-obligation estimate with the CHIP Home Income Plan guide.
@Darlene Vilas, Canada’s leading Reverse Mortgage Specialist, www.ReverseMortgageAdvantage.ca
Tags: CHIP, existing mortgage and reverse mortgage, mortgage debt payoff, mortgage payoff, reverse mortgage, reverse mortgage for senior citizens
September 9th, 2011
In today’s economy, your “golden years” might not have the luster you were expecting!
With rising inflation and today’s cost of goods and services, smart senior citizens are exploring viable options to maintain their lifestyles and enjoy their days, weeks and years without the constrictions of limited finances. It’s why thousands of Canadian homeowners are participating in CHIP’s (Canadian Home Income Plan) “Reverse Mortgage” option.
Imagine freeing up hundreds to thousands of dollars monthly by borrowing against the equity in your home WITHOUT having to take on a second mortgage. For older homeowners (55+), a reverse mortgage can be easily set up, effectively “reversing” the payment stream – there are no payments required.
You can choose to receive a Canadian reverse mortgage as one lump sum, as a fixed monthly payment for short- or long-term payouts, or as a combination of these options.
The proceeds you receive from your reverse mortgage in Canada can be used to simply supplement your retirement income and daily living expenses; cover property taxes or pay off existing debt (even foreclosure). Or, use the income to take the dream trip” you’ve always wanted or help your grandchildren through university.
Bottom line: A reverse mortgage gives you
your money from your equity to create more financial flexibility.
There are no hidden trap doors or caveats with a CHIP reverse mortgage.
As long as you own your home with some level of equity and are 55 years of age or older, you can qualify for a reverse mortgage in Canada. Further, a reverse mortgage never impinges on or alters current government assistance or benefits you may already be receiving. Extracting the equity from your home is non-taxable so it will not affect your CPP, GIS or OAS payments from the government.
Feel free to peruse other Frequently Asked Questions my clients have asked when they first came to me about setting up a reverse mortgage in Canada.
You might also want to check out my blog article, “The Top 4 Myths of Reversible Mortgages in Canada” for more information on the CHIP reverse mortgage framework.
Or, simply pick up the phone and call me, toll free, at (866) 223-1794. I’ll be happy to help you on your way to the golden years you truly deserve!
@Darlene Vilas, Canada’s leading Reverse Mortgage Specialist, www.ReverseMortgageAdvantage.ca
Tags: CHIP, home income plan for seniors, how to do a reverse mortgage, reverse mortgage, senior citizen mortgage
August 28th, 2011
A couple weeks ago, I received a call from a financial planner who specializes in helping senior citizens stretch their dollars to their fullest potential. After our initial discussion, the financial planner agreed that a CHIP (Canada Home Income Plan) Reverse Mortgage is a smart, safe and highly flexible way to establish new monthly income for his valued clients.
Just a few days later, we’re wrapping up a Reverse Mortgage for his clients, based primarily on the equity on their home. Now, instead of paying their monthly mortgage, this couple receives a monthly income from their investment, and it couldn’t have arrived at a more apt time in their lives.
Financial planning for seniors has to be particularly secure – no risky business or volatility allowed!
With a reverse mortgage, homeowners (age 55 or older) are charged interest only on the proceeds they receive. Clients can choose to forgo interest payments until they sell their home, or until the last homeowner passes away. And by choosing not to make monthly interest payments, all of the monthly income generated from their investments is positive. Best of all, when you use a Reverse Mortgage in Canada for investment purposes, you get to deduct the interest each year against your income taxes!
The CHIP Reverse Mortgage also offers surprising flexibility to financial planners’ clients in that it allows them to pay off existing debt or mortgages. And, credit scores are simply not an issue – reverse mortgages are approved entirely based on your age and the value of your home or condo!
For financial planners with clients aged 55+, the CHIP reverse mortgage offers a simple and elegant way to increase their clients monthly income, reduce clients taxable income, and allow their clients to continue to enjoy the appreciation and benefits of owning their own home. It’s a stellar portfolio piece in any financial planning business.
Whether you’re a financial planner or a potential client for a reverse mortgage, call me direct and toll free, at (866) 223-1794 to discuss the CHIP Reverse Mortgage fit. For Frequently Asked Questions, see our site, www.ReverseMortgageAdvantage.ca or explore more of these blog entries here as we take you through the facts, myths and case-by-case scenarios of reverse mortgage solutions!
@Darlene Vilas, Canada’s leading Reverse Mortgage Specialist, www.ReverseMortgageAdvantage.ca
Tags: financial planning senior citizens, reverse mortgage, reverse mortgage senior citizens, senior citizen financial plannning
August 16th, 2011
Some good things are worth the wait! As an official “senior citizen,” you’re not only eligible for a discounted rate on public transit & movie tickets, but you also may be eligible for a Reverse Mortgage in Canada. Perfect timing when you might find that your available finances are just not what they used to be, especially in today’s current economy.
Thanks to CHIP (Canadian Home Income Plan), “Reverse Mortgages” were put in place over 25 years ago to help homeowners (age 55+) borrow against the equity in their homes without having to sell the home, take on monthly mortgage payments, or give up title on the home.
When you put a Reverse mortgage in place in Canada, you have the choice, to no longer make regular mortgage payments to your lender – you can, of course, choose to make payments (monthly, semi-annually, yearly), but you are under no obligation to do so until you sell your home, or until the last home owner passes away. You are charged interest only on the proceeds you receive.
Yep … sometimes a Reverse mortgage sounds too good to be true.
The amount of funding you receive is done on a case-by-case basis depending on your age (must be 55+ years old) and your appraised home value, but a Canadian Reverse Mortgage is far from being a complicated science!
Sadly, there are a number of false concepts and ideas about Reverse Mortgages out there. We’ll address what we consider to be “The Top 4 Myths of Reverse Mortgages in Canada” here, below, but you’re also welcome to call us any time (toll-free) to discuss your most pressing questions at (866) 223-1794.
So, let’s quickly debunk a few of the big “myths” about Reverse mortgages for Canadians:
Reverse Mortgage MYTH #1: You can only qualify for a Reverse Mortgage with a higher level of income or credit.
A Reverse Mortgage has no income or credit requirements. (Other “mythizers” will tell you that you must be in good health – balderdash! What a ridiculous myth.)
The amount of funds you are eligible for with your reverse mortgage are solely dependent on your age, the location of your home (or condo or townhouse), and the amount of equity that you have in your home.
Reverse Mortgage MYTH #2: Your home must be debt free in order to qualify for a Reverse mortgage in Canada.
You can qualify for a reverse mortgage even if you still owe money on your existing home’s mortgage. Keep in mind that when you do invest in a reverse mortgage, your existing debt must be paid off first. This is normally done with your new, reverse mortgage or, if you prefer, from your savings or assistance from family or friends.
Reverse Mortgage MYTH #3: The mortgage lender behind your Reverse Mortgage will own your home.
A CHIP reverse mortgage does not give up ownership of your home. Just like a traditional mortgage, a reverse mortgage is registered on title, but your home always remains in your name. And, just as a traditional mortgage, the lender’s only “interest” lies in the outstanding loan balance.
Reverse Mortgage MYTH #4: Your heirs will be stuck with your Reverse Mortgage loan after you pass away.
The CHIP Reverse Mortgage only has to be repaid when your home is sold, either by yourself, or your estate. The estate can choose to repay the loan from the proceeds of the sale of the property, or to place a new mortgage on the property. After the loan is repaid, all of the remaining equity goes to your estate or heirs.
Again, you’re welcome to discuss these myths (and more if you’ve heard them!) by calling me any time. My direct line is toll-free (866) 223-1794. Any call you have with me is, of course, under no-obligation and is absolutely free.
Or, simply peruse our Frequently Asked Questions for more information on reverse mortgages
@Darlene Vilas, Canada’s leading Reverse Mortgage Specialist, www.ReverseMortgageAdvantage.ca
Tags: credit and reverse mortgages, reverse mortgage, reverse mortgage and estate rules, reverse mortgages in Canada
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