CHIP Reverse Mortgage:
A reverse mortgage is becoming more and more popular for homeowners age 55+. It allows these homeowners to access the equity in their homes.
There are no mortgage payments required, and you can choose to take the equity out in instalments or in one lump sum. Many homeowners will use this equity supplement their lower pensionable earnings and help cover monthly costs. Others will access the equity in one lump sum to use for travel, or to make a large purchase, or help family.
As a homeowner you are still responsible for paying your property taxes, and house insurance but again there is no mortgage payment required.
How does my CHIP Mortgage get paid?
The loan gets paid back once a homeowner passes away or sells/moves out of the home.
How Does a Reverse Mortgage Work?
To qualify for a reverse mortgage, you must own a home, be at least 55 years old and have enough equity built up in your home. The amount of tax-free cash you qualify for is based on your age and the appraised value of your home. The loan is repaid when your home is sold, or the last of the borrowers moves out or dies.