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26 Apr

Reverse Mortgage Basics

Reverse Mortgages

Posted by: Doug Cooper

Wouldn’t it be lovely to have a bit more “gold” in your “golden years”? Many seniors require a little financial bump in their retirement and are not aware that a safe, simple and sensible solution is available! A CHIP Reverse Mortgage enables you to release a small portion of the equity in your home and turn it into cash to help you enjoy your retirement your way.

BENEFITS OF A CHIP REVERSE MORTGAGE

You receive the money tax-free. It is 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.

You can use the money any way you wish. Maybe you want to enjoy your retirement or cover unexpected expenses. Perhaps you want to update your home or help your family without depleting your current savings. The only condition is that any outstanding loans (e.g. existing mortgage or home equity line of credit) secured by your home must be paid out with the proceeds from your CHIP Reverse Mortgage.

No regular mortgage payments are required while you or your spouse live in your home. The full amount only becomes due when you and your spouse no longer live in the home

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 condominium or maintenance fees while you live there.

You keep all the equity remaining in your home. 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.

It is important to understand that reverse mortgages in Canada are very different than reverse mortgages in the US. Be sure that you have information on Canadian reverse mortgages or better yet, call or email me with any questions. As a Certified Reverse Mortgage Specialist, I can answer all of your questions and ensure you have the right information so that you can make an informed decision.