Homes Loans Strategist
What is a CHIP Reverse Mortgage?
It's a financial solution designed for Senior Canadian homeowners
Unlike a traditional mortgage where you make payments to a bank or someone else, a reverse mortgage pays you. You can use the money in anyway you see fit and live your retirement comfortably knowing you don't need to leave your home.
The biggest benefit of the CHIP reverse mortgage is that you are not required to make regular payments for as long as you or your spouse lives in your home.
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.
1. Aging in Place - Become payment Free; home renovations
2. Topping up monthly Income - You can subsidize your income on a monthly basis instead of taking a lump some.
3. Rightsizing - Purchasing another home that is more suitable to your needs
4. Investing - Buying an investment property ; cottage
5. Grey Divorce - when separating from your spouse and financing a home through verse mortgage.
6. Living Will - to assist family members with downpayment for home of other needs
Have Questions About Reverse Mortgage & Other Services?
Don't Hesitate To Give Me A Call!
A CUSTOMIZED SOLUTION
As a certified reverse mortgage specialist who has been working over the past decade with multiple reverse mortgage solution , I can provide you unbiased advice when it comes to positioning yourseld for retirement.
BENEFITS OF A REVERSE MORTGAGE
UNLOCK YOUR HOME EQUITY WITH A TRUSTED LENDER
- Our lender, CHIP Home Income Plan, is the only national provider of reverse mortgages in Canada. CHIP has been Canada’s leading provider of reverse mortgages for more than 25 years. CHIP is a trusted partner with all the major banks in Canada, with foreign and regional banks, wealth management companies, and mortgage brokers.
YOU CHOOSE HOW TO RECEIVE UP TO 55% OF YOUR HOME’S APPRAISED VALUE
- We’ll tailor your CHIP reverse mortgage to specifically meet your needs. Once approved, you decide how much you want to take and when you want to take it. You can take the entire amount in a lump sum, or take a little now and more as needed. You can also choose planned advances, deposited into your bank account monthly, quarterly, semi-annually, or annually over a set period of time.
YOU MAINTAIN OWNERSHIP AND CONTROL OF 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. You can sell or move at any time you want to. You can also pay back the reverse mortgage any time you want to.
YOU RECEIVE THE MONEY TAX-FREE WHICH DOES NOT AFFECT GOVERNMENT BENEFITS YOU MAY RECEIVE
- The money you receive is not taxable income and will not affect government benefits you may currently receive, such as Old Age Security (OAS) pension, or the Guaranteed Income Supplement (GIS).
YOU AND YOUR ESTATE ARE WELL PROTECTED
- Unlike traditional lending, there is ZERO risk of ever losing your home – even if it depreciates in value over time. With other traditional loans, such as a line of credit, the loan can be recalled or you may default on your loan and lose your home altogether. With a CHIP reverse mortgage, there is no risk of default, and the loan is guaranteed never to exceed the fair market value of your home.
YOU DECIDE WHAT TO DO WITH THE REMAINING HOME EQUITY
- In over 25 years of experience, 99% of CHIP Home Income Plan clients have money left over when the loan is repaid. The reason:
- The reverse mortgage is ultra-conservative (only up to 50% of the appraised home value).
- The fact that house prices, over the long-term, continue to appreciate in value for most homes.
Frequently Asked Questions
Why Would I Want A Reverse Mortgage?
For the majority of Canadians, owning a home provides a sense of financial security and pride. But it doesn’t do any good having all of your equity stuck between four walls and a roof! Aside from actually selling your home, the safest way to access some of your equity is through a reverse mortgage. And with no monthly payment schedule, a reverse mortgage gives you the freedom to go from planning your retirement, to turning your retirement dreams into reality.
What Are Some Common Uses Of A Reverse Mortgage
Here’s how some of our clients have used the equity in their home to improve their retirement lifestyle:
Invested the proceeds to supplement retirement income
Helped grandchildren with their education
Renovated to improve home value & enjoyment
Eliminated existing debt which required monthly payments (credit card, mortgage, or line of credit)
Able to travel more often
Purchased an investment property
Purchased a recreational property or timeshare
How Much Money Do I Qualify For?
How much money do I qualify for? The amount of money you will qualify for depends on your age and your appraised home value. To find out how much you may qualify for, please fill out our online estimate request.
Is My Home Still Mine?
Absolutely. 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. You can sell or move any time you want to. You can also pay back the reverse mortgage any time you want to.
Why Is The Interest Rate Higher On A Reverse Mortgage Than A Normal Mortgage
Interest on a reverse mortgage is typically higher because you can choose to never make an interest payment for as long as you’re living in your home. You’ll still benefit from your home appreciating in value and the loan is guaranteed to never exceed the fair market value of your house.
If I Never Make A Payment, How Much Money Will Be Left When I Sell My Home?
In over 21 years of experience, 99% of CHIP Home Income Plan clients have money left over when the loan is repaid – about 50% on average. The reason:
- The reverse mortgage is ultra conservative (only up to 40% of the appraised home value)
- The fact that house prices, over the long-term, will continue to appreciate in value for most homes
We will be happy to provide you with a detailed projection of how much money will be left.
What If Housing Prices Plummet
If house prices in Canada plummet, you and your estate are well protected. With a CHIP reverse mortgage there is no risk of default and the loan is guaranteed never to exceed the fair market value of your home.
I Am Moving In Less Than 1 Year - Do I Have To Pay Back My Reverse Mortgage
With a CHIP reverse mortgage, you are able to sell or move at any time. If you are planning on moving & do not want to pay back your reverse mortgage, CHIP makes it easy for you to port your mortgage to your new home. Please contact us if you are planning on moving.
How Much Does A Reverse Mortgage Cost
There are three costs to set-up a reverse mortgage:
House Appraisal – this usually costs between $200 – $400+ depending on where you live. Independent Legal Advice – CHIP Home Income Plan requires all legal documentation to be signed in front of a lawyer. If you don’t have a legal advisor, we will be happy to introduce you to one in your area that is familiar with reverse mortgages. Legal Advice usually costs between $300 – $600. Legal Fees and Closing Costs – CHIP Home Income Plan charges $1,495 to cover administration and legal fees for setting up the reverse mortgage.
All of the above costs can be deducted from the proceeds of your reverse mortgage. Once completed, there are no ongoing fees, renewal costs or any other fees for as long as you have your reverse mortgage.
When Is The Reverse Mortgage Due
The reverse mortgage is due when you sell your home, or when you pass away and your estate sells your home.
Can I Get A Reverse Mortgage On My Cottage?
Yes, but depending on where you live, it may be more advantageous to set-up your reverse mortgage on your primary residence.