CHIP Reverse Mortgage products help with financing if you are over 55 and need to access money to pay for debts, expenses, home renovations, travel, or unforeseen circumstances — without having to sell your home? The chip reverse mortgage is a loan that’s secured against the value of your home. It enables you to convert up to 55% of the home’s value into tax-free cash. This is an ideal way to stay in your home for longer and set yourself up for a stress-free, financially stable retirement.
How does it work?
Think of it as a savings account, it allows you to access up to 55% of your homes appraised value for whatever you want. If you currently have a mortgage balance on your home, that needs to be paid off and the difference after it is paid is yours to use as you see fit.
With a reverse mortgage, you maintain ownership of your home and there are no monthly mortgage payments required. Repayment of the loan is only required once you chose to move or sell. CHIP guarantee’s that the amount you eventually repay will never exceed the fair market value of your home. And if your home goes up in value, the appreciation is all yours. You are simply required to maintain your property and pay the taxes and insurance.
To qualify for a Reverse Mortgage in Canada, the following factors are assessed:
You and your spouse’s age
Location of your home
Type of home (e.g. detached, condo, townhouse etc.)
The appraised value of your home
The condition of your home
Your home equity
Albertans worked hard to become homeowners, and it’s important that we keep it that way. With a Canadian Reverse Mortgage, you always maintain control of your home*. In other words, you will never be forced to sell or move as a result of changing home values or earning power (remember, there are no monthly mortgage payments). And we guarantee the amount that you or your estate eventually has to repay will never exceed the fair market value of your home at the time it is sold*. There’s no reason your home should ever be a burden to you or your family. There is a cost of $1795.00 to set up a reverse mortgage.
Like many Albertans, with pensions declining and savings are limited, a CHIP Reverse mortgage can be an answer to help you live a retirement free from stress.
Our local Edmonton Mortgage Broker Eva Neufeld can help make the process and stressfree as possible. Inquire today at 780-244-0505