If you are a Canadian over 55, you likely have a number of assets including the equity in your home and the money you have saved over the years. Additionally, there is a strong probability that your home, which makes up a sizeable amount of your net worth, has seen significant growth in value since you purchased it. Although having a house that has appreciated in value is good, you usually can only spend that money if you sell. And a lot of homeowners just don’t want to do that. The alternative is to take out a mortgage against the property, but you might have to do so on a now-reduced income and make consistent monthly payments that your budget won’t allow.

This is where CHIP Reverse Mortgage comes in. This financial solution benefits Canadian homeowners with a loan backed by the equity built up in their homes. This loan product is offered by HomeEquity Bank, a Schedule 1 Canadian Bank, and allows you to keep your home and take a loan, without paying monthly mortgage payments.

With a CHIP Reverse Mortgage in Ottawa, you do not have to worry about any payments until you move or sell, which is a great way to have additional financial resources without taking on more bills. With this type of loan, you can borrow up to 55% of your home’s value, which you can use for whatever reasons you want.

Another benefit to CHIP Reverse Mortgages is that you do not need to provide income or medical history in your application, which makes it very flexible and easy to apply to. You can get the financing quickly and even choose how you get it. CHIP Reverse Mortgages are flexible. You can either get the full amount in a lump sum or take installments over time. It is up to you. You can also choose to make annual or monthly interest payments or pay the principal and interest in full when you wish.

If you are over 55, you probably have been working hard to ditch the mortgage on your home, and if you still are paying off one, that’s ok too. With a CHIP Reverse Mortgage, you still own your home and are not required to start monthly principal or interest payments until you move or sell. Your loan also guarantees what you owe back once the home is sold so that what you owe back never exceeds fair market value. 

Finally, reverse mortgages are tax-free cash. Rather than reduce your precious retirement savings, you can take out a reverse mortgage easily and provide peace of mind to you and your family. How you use the funds is entirely up to you.

If you wish to learn more about or start an application for a CHIP Reverse Mortgage in Ottawa, The Mills Team is ready to help you get started.