CHIP Reverse Mortgage: Empowering Your Retirement with Home Equity

The Reverse Mortgage for Canadians 55 and over

Thousands of 55+ Canadians are beginning to realize just how wealthy they are, when they consider the equity they’ve built in their homes

  • Access up to 55% of your home value in tax-free cash!
  • Keep the home you love
  • No monthly mortgage payments

WE’RE HERE TO HELP 

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What is an CHIP Reverse Mortgage?

A CHIP Reverse Mortgage is a loan that allows you to convert a portion of your home equity into tax-free cash. Unlike traditional mortgages, you are not required to make monthly payments. Instead, the loan is repaid when you sell your home, move into long-term care, or pass away. This product is ideal for retirees looking to improve their financial security without having to leave their home or make regular mortgage payments.

With the CHIP Reverse Mortgage, the amount you can borrow is based on factors such as your age, home value, and location. The older you are, the more of your home’s equity you can access.. For more details, visit the Financial Consumer Agency of Canada

Benefits of an CHIP Reverse Mortgage

 

    • Access Up to 55% of Your Home’s Value: Depending on your age, home value, and location, you can unlock up to 55% of your home’s appraised value in tax-free cash.
    • No Monthly Payments: There are no monthly mortgage payments with a CHIP Reverse Mortgage. The loan is only repaid when your home is sold.
    • Tax-Free Cash: The funds you receive from a CHIP Reverse Mortgage are tax-free, allowing you to use the money for any purpose, whether it’s paying off debts, funding home improvements, or helping family members.
    • Stay in Your Home: You remain the homeowner and continue living in your home for as long as you wish, provided you keep up with property taxes, insurance, and home maintenance.
    • Flexible Payment Options: You can choose to receive the money as a lump sum, through scheduled payments, or a combination of both, depending on your financial needs.

CHIP Reverse Mortgage provides flexible reverse mortgage solutions that allow retirees to access their home’s value while staying in their home.

Why Consider a CHIP Reverse Mortgage?

  • A CHIP Reverse Mortgage offers numerous benefits for Canadian homeowners who are 55 and older. Here are the key reasons to consider choosing this financial solution:

    1. No Monthly Payments

    With an HomeEquity Bank Reverse Mortgage, you are not required to make monthly mortgage payments. This provides relief from the financial strain of regular payments, allowing you to maintain cash flow throughout your retirement.

    2. Tax-Free Cash

    The funds you receive from a reverse mortgage are entirely tax-free. This means you can use the money without affecting your taxable income, government benefits such as Old Age Security (OAS), or Guaranteed Income Supplement (GIS).

    3. Unlock Up to 55% of Your Home’s Value

    HomeEquity Bank allows you to access up to 55% of your home’s appraised value. This gives you access to a significant amount of capital without the need to sell or downsize your property.

    4. Stay in Your Home

    You remain the owner of your home, with the ability to continue living in it for as long as you choose. There is no requirement to sell your property, ensuring you can age in place comfortably.

    5. Flexible Payout Options

    HomeEquity Bank offers flexible options for receiving your funds. You can choose a lump sum payment, schedule periodic advances, or a combination of both, depending on your financial needs and goals.

    6. No Impact on Government Benefits

    Since reverse mortgage proceeds are tax-free, your OAS, GIS, and other government benefits will remain unaffected. This allows you to boost your retirement income without jeopardizing any other sources of support.

    7. Protected by a No-Negative-Equity Guarantee

    HomeEquity Bank ensures that you will never owe more than the value of your home at the time of sale. Even if your home’s market value decreases, the amount you owe will not exceed the sale price.

    8. Competitive Interest Rates

    While reverse mortgage rates are generally higher than traditional mortgages, CHIP Reverse Mortgage offers competitive rates within the industry, and you can choose between fixed and variable interest options to suit your financial situation.

How Does an CHIP Reverse Mortgage Work?

The CHIP Reverse Mortgage allows Canadian homeowners aged 55+ to access a portion of their home’s equity while staying in their home. Here’s how it works:

  1. Eligibility: You must be at least 55 years old, and the home must be your primary residence.
  2. Home Appraisal: Your home’s value will be appraised to determine how much you can borrow, with a maximum of 55% of the home’s appraised value.
  3. Receive Funds: Once approved, you can receive the funds in a lump sum, through periodic advances, or a combination of both.
  4. No Monthly Payments: You do not need to make any mortgage payments during the life of the loan.
  5. Loan Repayment: The loan is repaid when you sell your home or pass away, using the proceeds from the home’s sale.

The amount of money you can borrow depends on several factors, including your age, the value of your home, and where your home is located. Homeowners in larger urban centers may qualify for larger loan amounts.

For detailed information, consult the Government of Canada’s reverse mortgage guide.

CHIP Reverse Mortgage Eligibility