Turn Your Home Into TAX-FREE Cash Without Having to Move or Sell

Do you have Dreams and Goals for your retirement?

Are you a homeowner over 55?

You may be able to enjoy the benefits a reverse mortgage offers you. Find out more now.

What is a Reverse Mortgage?

Have you been wondering what exactly is a reverse mortgage? Maybe a reverse mortgage is something you have heard about in conversations with friends and family or maybe it is an option that is completely new to you. Either way, you will want to get some clarity before taking any steps forward.

What is a Reverse Mortgage? A reverse mortgage is a safe, constructive way to access funds that would otherwise stay locked in the equity of your home.

What is a Reversible Mortgage Instead of paying the lender every month, like you would with your mortgage, the lender pays you! You can choose to get the money in a lump sum or in monthly payments, allowing you to transform a portion of your home’s value into tax-free cash and improve your standard of living. The best part is you can choose to defer the payments for as long as you and your spouse live there.seniors-travel reverse reversed reversible mortgage loan seniors GTA Toronto Canada CHIP

Sometimes referred to as a Reversible Mortgage or a Reversed Mortgage, a Reverse Mortgage loan is a safe way to release the funds that might otherwise have remained locked as the equity in your home.

The big benefit of a reversible mortgage is that the lender pays you, instead of you paying the lender. Whether you choose to receive a portion of your home’s value in monthly payments, a lump sum, or in the form of accessible credit, you can improve your standard of living by turning part of your home’s value into tax-free cash. The best part of a reverse mortgage is that you don’t need to worry about any interest for as long as you and your spouse live there.

Key Facts about Obtaining a Reverse Mortgage

  • You must be a Canadian homeowner who is over 55 years of age to be eligible
  • You can receive up to 50% of your home’s value, depending on your age
  • No payments are required until you sell your home
  • You can submit your information now and we will forward it to the lender on your behalf.

For answers to more of your important questions, see our Frequently Asked Questions.

Many seniors look forward to embracing the new opportunities this new phase of life offers them. Taking advantage of their home’s value and extracting the equity is a smart, safe way to improve your lifestyle and do the things you want to do.

If you feel like you have a better understanding of what a reverse mortgage is but are not sure if this is the best offer for you, contact us and we will connect you with an expert who can guide you to the best solution for your individual needs.

How Reverse Mortgages Work

Not 100% sure how reverse mortgages work and wondering whether you qualify for the CHIP Home Income Plan? No problem. The following questions will help you discern whether you are eligible for a reverse mortgage.

How Reverse Mortgages Work

Do you qualify for a reverse mortgage?

    • Are you a home owner in Canada?
    • Are you 55 years of age or over?
    • Is your current mortgage under 40% of your home’s total value?

If you answered yes to these questions, you are eligible!

What is the Catch?

The Downside of a Reverse Mortgage for One is Not a Downside for All

Downside of Reverse Mortgages

As someone searching for a way to maximize the your assets, and take advantage of the equity in your home it is advisable to be aware that there can be downsides to reverse mortgages, especially for those with an unclear expectation of reverse mortgages.

Does the extent of your knowledge include the downsides of reverse mortgages? Are you aware of the unique benefits they have to offer the right people?

Where do the Downsides of Reverse Mortgages Come From and How Can I Avoid Them?

A Reverse Mortgage is Right for Some; not right for others

As someone searching for a way to maximize the value in your assets, it is constructive to be aware that there can be downsides of reverse mortgages, especially for those with an unclear definition of reverse mortgages.

Does the extent of your knowledge surround the downsides of reverse mortgages? Are you aware of the unique benefits they have to offer the right people?

What are the Downsides of Reverse Mortgages and How Can I Avoid Them?

The downsides to reverse mortgages are usually related to the fact that this option was not best suited for that particular person and their circumstances or based on some misconceptions about reverse mortgages. A common misconception is that Canadian reverse mortgages are the same as those offered in the US; they are very different financial instruments, with far more consumer protection offered in Canada.seniors-doing-paperwork

Here are some of the most common issues people bring up:

    • Will my house still be mine?

The answer is simply, yes. You are free to renovate, sell, or do anything else you wish to do as long as you and your spouse continue to occupy the home. Although your equity decreases, since that’s where your loan funds are coming from, you do not by any means lose ownership of the home. In fact, you may choose to preserve the equity in your home by opting to make interest payments. A CHIP professional will help you with this decision.

    • Are interest rates on a reverse mortgages higher than a line of credit or a regular mortgage?

Interest on a reverse mortgage is typically higher because you have the option of never making an interest payment until the selling of your home. The reality is there is little difference in the cost of a reverse mortgage when you factor in the value of being able to do the things you have worked your whole life to do.

    • Because I don`t need to make any payments, won’t all my equity be gone, with nothing left at the end? Is it possible for me to owe more than the value of my home?

No, the loan is guaranteed to never exceed the fair market value of your house. Plus, we put limits on how much you can transfer from your home equity to ensure a large portion of your equity is still intact.

    • I heard it was really costly to arrange a reverse mortgage and I don’t have that money available to set it up. Is this true?

Set up costs are as follows:

  • Appraisal Fee
    • Typically from $175 to $400 as an out-of-pocket cost.
    • Actual amount varies by province and for urban and rural properties.
    • Request for an independent appraisal is ordered through CHIP.
  • Independent legal advice is required
    • Typically $300 to $600 as an out-of-pocket cost.
    • Price range assumes no title issues.
    • At your request, CHIP can provide a list of legal advisors in your area.
    • It is recommended that you discuss fees with the legal advisor before proceeding.
  • Legal, closing and administrative costs
    • Costs are $1,495 for all of our interest rate options.
    • These costs will be deducted from your CHIP Home Income Plan funds so they are not an out-of-pocket expense.
  • Cost includes title search, title insurance and registration

When all is said and done, the cost is very similar to arranging a typical mortgage loan.

  1. What if my house drops in value?

All CHIP reverse mortgages are designed to keep you well protected by never exceeding the value of your home on the market and there is no risk of default.

With these potential downsides addressed, it’s possible to look realistically at the reverse mortgage and whether it is suitable for your lifestyle. Simply provide your information and we will contact you.

Frequently Asked Questions

    • Will my house still be mine?

The answer is simply, yes. You are free to renovate, sell, or do anything else you wish to do as long as you and your spouse continue to occupy the home. Although your equity decreases, since that’s where your loan funds are coming from, you do not by any means lose ownership of the home. In fact, you may choose to preserve the equity in your home by opting to make interest payments. A CHIP professional will help you with this decision.

    • Are interest rates on a reverse mortgages higher than a line of credit or a regular mortgage?

Interest on a reverse mortgage is typically higher because you have the option of never making an interest payment until the selling of your home. The reality is there is little difference in the cost of a reverse mortgage when you factor in the value of being able to do the things you have worked your whole life to do.

    • Because I don`t need to make any payments, won’t all my equity be gone, with nothing left at the end? Is it possible for me to owe more than the value of my home?

No, the loan is guaranteed to never exceed the fair market value of your house. Plus, we put limits on how much you can transfer from your home equity to ensure a large portion of your equity is still intact.

    • I heard it was really costly to arrange a reverse mortgage and I don’t have that money available to set it up. Is this true?

Set up costs are as follows:

  • Appraisal Fee
    • Typically from $175 to $400 as an out-of-pocket cost.
    • Actual amount varies by province and for urban and rural properties.
    • Request for an independent appraisal is ordered through CHIP.
  • Independent legal advice is required
    • Typically $300 to $600 as an out-of-pocket cost.
    • Price range assumes no title issues.
    • At your request, CHIP can provide a list of legal advisors in your area.
    • It is recommended that you discuss fees with the legal advisor before proceeding.
  • Legal, closing and administrative costs
    • Costs are $1,495 for all of our interest rate options.
    • These costs will be deducted from your CHIP Home Income Plan funds so they are not an out-of-pocket expense.
  • Cost includes title search, title insurance and registration

When all is said and done, the cost is very similar to arranging a typical mortgage loan.

  1. What if my house drops in value?

All CHIP reverse mortgages are designed to keep you well protected by never exceeding the value of your home on the market and there is no risk of default.

Submit Your Information

CHIP, Reverse Mortgages, Reverse Mortgage Loans, Reverse Mortgages Canada, HomEquity Bank, CHIP Mortgage, CHIP Money, Home Equity, Home Equity Loans, Home Equity Line of Credit are search terms used to find this page.

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