The Reverse Mortgage for Seniors provides cash flow to meet your financial needs in your retirement years. Whether it is to pay off debt (car loan, credit card dues, line of credit), take on renovations to make your house more accessible, maintain your lifestyle or cope with unforeseen expenses, you can transform up to 55% of your home’s equity into tax-free cash.
Here are 5 important facts about the Canadian Home Income Plan (CHIP) reverse mortgage explained by HomEquity Bank (the only provider of most reverse mortgage products in Canada). The information below will be useful to help you determine whether this is the ideal financial solution for you.
- You maintain full ownership and control of your home: There is zero risk of losing your home as the loan amount is guaranteed never to exceed the fair market value of your home. It remains in your name and you can sell it or move anytime you want.
- You receive tax-free money which does not affect your government benefits: The money you receive is not taxable income and it will not affect any government benefits that you may currently receive, such as Old Age Security (OAS) pension or the Guaranteed Income Supplement (GIS).
- We will help you arrange for an independent appraisal of your home and complete an application form as well as confirm the exact amount of money you qualify for and answer any questions you may have.
- You choose how to receive the money: Once approved, your CHIP reverse mortgage is designed to specifically meet your needs. You have the option of taking the entire amount in a lump sum, planned advances that provide you with regular income or a little now and more as needed.
- No payments are required until you move or sell: Unlike a conventional mortgage or line of credit, you do not have to make any payments, interest or principal, for as long as you or your spouse continues to live in the home. Keep in mind, however, that there will be interest accumulating on your reverse mortgage. When and if you decide to sell this home. You will be required to repay the loan with the accumulated interest.
CHIP is designed exclusively for Canadian homeowners aged 55+. At The Mortgage Centre, our CHIP specialist, Darlene Vilas can help determine your eligibility and how much you will qualify for. We work for you, not the lender.
To find out more about a reverse mortgage for seniors, please call 1-866-597-5626 or contact us online.