Product Spotlight: Reverse Mortgages offered by CHIP
Do you know a senior who is feeling anxious about their financial future? I offer CHIP Mortgages, through Home Equity Bank. Home Equity Bank has been providing quality financial solutions for seniors for more than 25 years.
How does a CHIP Mortgage work?
- You can access up to 55% of the value of your home: the amount of equity you can withdraw depends primarily on your age as well as other factors such as the type of home you own (condo, single family) and where the property is located.
- You always maintain ownership of your home and never have to move or sell: you DO NOT sign your title over to CHIP. CHIP will register a mortgage on the title to your house (same as with a regular mortgage) but you retain ownership of the home. CHIP will never force you to sell or move. You stay in your house, for as long as you want (as long as your property taxes and insurance are up-to-date).
- There are no payments required: this is the beauty of the CHIP solution. You never have to make a payment or sell your home. The interest costs will be added into the mortgage balance, over time.
- You can receive your tax-free cash over time or one lump sum: you can receive a monthly payment or a one time lump sum amount.
- NO tax implications: One of the major benefits of a CHIP reverse mortgage is that utilizing the equity in your home has no tax implications so it can often be more advantageous to use your home equity before withdrawing funds from your investments or RRSP.
It is a sad reality that there are many seniors in Canada who own their home and are struggling because they do not know about this product or do not fully understand the benefits.
This product allows the borrower to stay in the home they love, while being able to access the equity in their home without having to make any payments.
There are many misconceptions about reverse mortgages. Often this comes from the US, where this type of financing can be quite different. If you would like more information or clarification on the process of obtaining a CHIP mortgage please reach out to me. I would be happy to provide you with more information.