Chip Reverse Mortgage
Is the CHIP Reverse Mortgage Right for You?
As a Canadian aged 55+, choosing the right financial solution for retirement is crucial. The CHIP Reverse Mortgage by HomeEquity Bank offers a flexible option to address various financial needs. Whether you’re looking to consolidate debt, enhance cash flow, or manage expenses, the CHIP Reverse Mortgage can help. It allows you to cover bills, handle unplanned costs, and even enjoy new opportunities like travel or purchasing a vacation property. Explore if the CHIP Reverse Mortgage is the ideal choice for your retirement needs.
The Versatility Of The Chip Reverse Mortgage
INHERITANCE
Helping kids or grandkids with a down payment for a home, being around to see the kids enjoy their inheritance.
HOMECARE OR ASSISTED LIVING FOR ONE SPOUSE
In need of homecare or assisted living for one spouse and thinking they must sell their home.
GREY DIVORCE
One spouse buying the marital home from the other.
FINANCIAL SHORTFALL
Outliving savings and thinking they must sell their home, dipping into their RRIF, selling when market is down.
CHILDREN'S FINANCIAL ASSISTANCE
Kids needing to help parents with monthly expenses.
DECLINED FOR CREDIT
Income is too low, poor credit history, tax arrears, borrowing from high interest rate lenders.
REAL ESTATE INVESTMENT
Purchase of real estate for investment, leisure or delaying sale of existing property
RETIREMENT DREAMS MAJOR PURCHASE/ EXPENSE
Rightsizing and keeping some funds to enjoy life. Purchase a motor home, trailer, car, or fund a renovation.
FINANCIAL STRAIN
Constantly in overdraft, making minimum payments on credit cards.
DEATH OF SPOUSE
Loss of OAS, part of CPP and housing cost doesn't change. Needing to requalify for revolving credit. Credit no longer life insured due to age.
Customizable Solution
Who can qualify?
- Canadian homeowners
- Age 55 or better
- Home must remain your
- Primary residence
*Some conditions apply
CHIP Reverse Mortgage BENEFITS
Unlock the value in your home and turn it into cash with a CHIP Reverse Mortgage. It’s a simple way to get the funds you need to enjoy life on your terms.
Equity Protection
Most homeowners still have 50% of their home's value when the loan is repaid.
Tax-Free Money
The money you receive is tax-free and won’t affect your OAS or GIS benefits.
Use It Your Way
Whether it's for retirement, home updates, or helping family, you can use the funds as you wish.
Keep Your Home
You maintain ownership and control of your home. The loan is only due when you and your spouse no longer live there.
No Regular Payments
No mortgage payments are required while you or your spouse live in your home.
CHIP FAQS
A CHIP Reverse Mortgage allows you to access up to 55% of your home’s value, with no regular payments required while you live there.
Homeowners aged 55 and older.
The amount depends on your age, home location, and appraised value. Contact me for a quick estimate.
You can choose a lump sum, planned advances, or a combination.
No. In most cases, homeowners have money left over when the loan is repaid.
Yes. You retain ownership and title.
You can use a reverse mortgage to pay off your existing mortgage and other debts.
No. It's a strategic financial option recommended by many professionals.
There are one-time fees for appraisal, legal advice, and administration, which are covered by the loan.
You won’t have to make any payments as long as you live in your home.
Contact me today to learn more or find out how much you can receive!
Why Choose a Reverse Mortgage Over a HELOC?
When it comes to tapping into your home equity, two popular options are a Home Equity Line of Credit (HELOC) and a reverse mortgage. Here’s why a reverse mortgage might be the better choice for you:
HELOC vs. Reverse Mortgage:
HELOC:
Access up to 65% of your home’s value, with the flexibility to borrow as needed. However, it requires minimum monthly interest payments and regular requalification based on your credit score.
Reverse Mortgage:
Specifically designed for Canadians 55+, allowing access to up to 55% of your home’s value as tax-free cash. There are no monthly payments, and the loan only comes due when you move, sell, or after passing.
Benefits of a CHIP Reverse Mortgage:
No Monthly Payments:
Provides peace of mind with no required payments while you live in your home.
Easier to Qualify:
Ideal for retirees on a fixed income, with no need for continuous credit checks.
Spouse Protection:
The loan isn’t due until both homeowners no longer live in the home, offering security in the event of a spouse’s passing.
Fixed Rates:
Lock in rates for up to five years, unlike the fluctuating interest rates of a HELOC.
What is the No Negative Equity Guarantee?
The No Negative Equity Guarantee* ensures that as long as you meet your property taxes and mortgage obligations, you will never owe more than your home’s fair market value. If the sale of your home doesn’t cover the mortgage balance, HomeEquity Bank will cover the difference.
Rare Shortfall
It’s uncommon for a home to sell for less than the mortgage balance. HomeEquity Bank limits lending to 55% of the home’s value. nce.
Equity Protection
Over 30 years, 99% of reverse mortgage holders have had equity left in their home, often around 60%.
Interest Impact
Increasing home values generally offset interest costs, preserving your equity.
Contact me to learn more about the CHIP Reverse Mortgage and how it can benefit you!
Happy Clients
