More and More Canadians aged 55+ are unlocking their home equity to live a better, lower risk retirement
CHIP Reverse Mortgage Canada
Home prices in Canada are at an all time high, and long time home owners(usally aged 55+) are reaping the rewards. With retirement on the horizon, most are not ready to downsize, but still want to be more financially stable without depending so much on the real estate market which in the event of a crash, most seniors would be financially devastated and need to post pone retirement until as late as 70 years old.
“The problem that we’re seeing is that this demographic has almost all their equity tied up in their primary residence. It’s a huge problem for our aging generation who are house rich but are not ready to downsize” says Erica, President of Vancouver Mortgage.
As a result of the unique real estate scenario we’re experiencing, specialized lenders have begun issuing what is known as a “reverse mortgage”. It’s a relatively new but extremely popular financial product that allows qualifying Canadians to sell a portion of their home for a lump sum payment, regular payments, or a combination of both.
“This product really works for both parties. Canadians aged 55+ can have a much more comfortable retirement, while not having to immediately downsize or change their lifestyle”
What is a Reverse Mortgage
A reverse mortgage is when a special financial institution issues you a lump or regular payments in exchange for a small portion of your homes equity. This money can be used for whatever you want.
What is a Reverse Mortgage in Canada
Reverse mortgages in Canada, unlike in other countries are only offered by two specialized financial institutions. Both these institutions are recognized and listed on the government of Canada’s website. Reverse mortgages through these institutions are only available to Canadian residents.
What is a CHIP Reverse Mortgage
A CHIP reverse mortgage is a very popular product offered nation wide by Homequity bank, one of the two government recognized reverse mortgage institutions. The CHIP reverse mortgage is one of the safest, most trusted, and most popular reverse mortgage products available in Canada, and is usually one of the top choices for anyone interested in a home equity reverse mortgage.
Reverse Mortgage Rates
One of the major reasons reverse mortgages are so popular in Canada is because of mortgage rates. As with any mortgage, the rates fluctuate based on the economy, but are usually just a point or two higher than a regular mortgage. Reverse mortgages are almost always cheaper than getting a home equity line of credit that can be loaded with hidden fees.
What is the minimum age for a reverse mortgage
The minimum age for a reverse mortgage in Canada is 55 years old. You also must own your home. Even if you have a regular mortgage still owing on your home, you are still able to take out a reverse mortgage.
How is a reverse mortgage repaid?
As with a regular mortgage, a reverse mortgage is repaid when your home is sold. A portion of the revenue from the sale will go to you, and a portion will go to the financial institution. A reverse mortgage is like a low-interest cash advance on your home so you can make the most out of life in retirement.
Reverse Mortgage Canada Pros and Cons
- You don’t have to make any regular loan payments
- You may turn some of the value of your home into cash, without having to sell it
- The money you borrow is a tax-free source of income
- This income does not affect the Old-Age Security (OAS) or Guaranteed
- Income Supplement (GIS) benefits you may be getting
- You still own your home
- You can decide how to get the funds
- There will be less money in your estate to leave to your beneficiaries
- The equity in your home will decrease as you collect money
- Reverse mortgages cost slightly more than a regular mortgage, but less than a home equity loan or line of credit
How does a reverse mortgage work
Reverse mortgages are very simple, which is why they are so popular – there’s no gimmicks involved.
The current value of your home, less any outstanding mortgage amounts is your home equity. A reverse mortgage allows Canadians over the age of 55 who own their home to sell a portion of their home equity for regular or lump sum payments. This allows more financial freedom and limits having “all your eggs in one basket” – the real estate market.
How does a CHIP reverse mortgage work
A CHIP reverse mortgage works no differently than a regular reverse mortgage. A Chip reverse mortgage is simply one of the most popular reverse mortgage products in Canada, and is offered through our expert staff at Vancouver Mortgage. We are approved CHIP reverse mortgage specialists.
CHIP Reverse Mortgage Reviews
CHIP reverse mortgages have been used by thousands of Canadians over the age of 55 and for good reason – they work! Just watch these videos from REAL CHIP reverse mortgage customers.
CHIP Reverse Mortgage
The CHIP Reverse Mortgage is a strongly recommended product by Vancouver Mortgage for ANYONE over the age of 55 who owns their home. A CHIP reverse mortgage allows you to unlock a portion of equity in your home and spend it HOWEVER you like. It’s your money that you earned through smart investments in your real estate.
What would YOU spend your money on?
- Home Repairs or Rennovations
- Help your children or grandchildren
- Medical Expenses
- Community involvement/classes
- Pay off existing Debt
These are just a few of the ways THOUSANDS of Canadians have spent their CHIP Reverse mortgage money on.
Reverse Mortgage for Seniors
If you’re interested in living a better quality life and unlocking your home equity, speak with one of our specialists. We’re EXPERTS in the CHIP Reverse Mortgage process, and will provide you expert advice and assistance from start to end. Forget the hassle of paperwork and document submission. Working with a Vancouver Mortgage expert includes a 100% free, no obligation consultation.
and recommended by:
4 time World Champion Figure Skater and Proud Canadian
Consultations are limited and are likely to fill up. Claim your spot now!
Only Available to:
- British Columbia Home Owners (you don’t need to fully own your home)
- Must be 55 years of age or older