Many of our Senior clients are always asking for a solution to increase their cash flow and manage their debt.
The truth is, debt in retirement use to be a faux-pas, but today, more and more Canadians are entering retirement with growing debt. The average life expectancy is higher than ever and the cost of living is often greater than pension incomes.
Did you know…
- In Canada approximately 1,000 people turn 60 every day
- They have a 50% chance of living to 92
- 51% are carrying debt into retirement
- 50% believe they will run out of money in 10 years
- 91% do not want to live with family. They want to stay in their home or neighbourhood and live independently as long as possible
HomEquity Bank, the provider of the CHIP Reverse Mortgage, is a federally regulated Schedule 1 Canadian Bank and is the only provider of reverse mortgages in Canada for homeowners 55 and over. In fact, they are the only Canadian Bank dedicated to exclusively servicing seniors and providing seniors with a mortgage solution that is flexible, and affordable.
What is a Reverse Mortgage?
A reverse mortgage allows Canadians 55 and older to unlock up to 55% of the value of their home to assist with any financial need. The money received from a reverse mortgage is tax-free, there are no health checks to qualify for and no payments required –interest or principal- for as long as at least one borrower lives in the home.
You’ve worked hard to own your home. Now get your home working for you:
- Pay off or consolidate debt
- Supplement income
- Renovate or make your home more accessible
- Handle unexpected expenses
- Help your children or grandchildren
- Improve your standard of living by paying for a vacation getaway or making a special purchase
Who is eligible for a Reverse Mortgage?
- Homeowners age 55 or older (in the case where the homeowners are a couple or co-owners, both must be at least 55 years of age). The home must be your principle residence.
- The property can be a house, townhouse, or condo, as long as there is enough equity to qualify.
Can I lose my home?
You will remain the owner of your home and can stay in it as long as you wish! CHIP will never ask you to move or sell. You and/or your spouse can stay in your home as long as you wish provided you pay your property taxes and home insurance, and keep your property in good maintenance.
How different are Reverse Mortgages in Canada from the US?
A CHIP Reverse Mortgage in Canada differs greatly from reverse mortgages offered by our American neighbours. In the US there are numerous reverse mortgage providers, each offering different features. Much of the media and misinformation about reverse mortgages is rooted in the US. HomEquity Bank (the only provider of reverse mortgages in Canada) is a federally regulated Schedule 1 Canadian bank, which ensures that you have a trusted and secure bank providing you with your reverse mortgage.
How have Reverse Mortgages improved in Canada?
The Canadian Home Income Plan (CHIP) was founded in 1986 by William Turner. The program was initially offered only in Vancouver and by 2001, CHIP Reverse Mortgage was available across Canada. In 2009, HomEquity Bank officially became a Chartered Bank and later that year became a Schedule 1 Canadian Bank. Over the years, HomEquity Bank has been improving the CHIP Reverse Mortgage, making interest rates more competitive, adding term options and increasing the amount of home equity a client can access. HomEquity Bank has also made it mandatory for clients to seek independent legal advice before being approved for a reverse mortgage.