Simply put, a reverse mortgage is a loan secured by the equity in your home. It’s called a reverse mortgage because unlike a traditional mortgage where you pay off your home, with a reverse mortgage, your home pays you. Below are some of the details of the CHIP Reverse Mortgage.
Details on the CHIP Reverse Mortgage
- The CHIP Reverse Mortgage is designed exclusively for Canadian homeowners 55 and older. This age qualification applies to both you and your spouse.
- You can receive up to 55% of the value of your home. The specific amount is determined by the current appraised value of your home, your age and that of your spouse, and the location and type of home you own.
- You choose how you want to receive the money. Most people take all the money that we make available to them in one lump sum. However, you can take what you would like now and contact us later to take more.
- You receive the money tax-free. Because it’s a loan, it’s 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
- 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.
- You maintain ownership and control of your home. You will never be asked to move or sell to repay your CHIP Reverse Mortgage. All that’s required is that you maintain your property and stay up-to-date with property taxes, fire insurance and any condominium or maintenance fees.
- You keep all the equity remaining in your home. In our 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.
- 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.
With a CHIP Reverse Mortgage you can take up to 55% of the value in your home, as tax-free cash, stay in your home for as long as you wish, maintain complete ownership and control of your home at all times, and never make a payment until you choose to move or sell. You can use the money anyway you see fit; pay out an existing mortgage, pay off credit card debts, pay some bills, fix up your home or cover monthly expenses – whatever you decide.