Interested in learning more? Request Information
What Is A Reverse Mortgage (CHIP)?
A reverse mortgage allows Canadian Seniors (55+) to access equity in their home without having to prove income or make any mortgage payments until such a time when they decide to sell or move. It’s available for purchasing a home as well.
With A Reverse Mortgage You Can…
- Refinance or purchase your principal residence
- Obtain a mortgage without having to make any payments
- Consolidate debt
- Renovate your home
- Help a child with their down payment (they can seek a traditional mortgage here)
- Supplement your retirement income to do whatever it is that makes you happy
- Remain in your home/pay for in-home care services if required
What Should You Know About The Program?
- You must be 55 years or older (all applicants)
- The maximum amount you can borrow is 55% of the appraised value of your home and is based on your age, location and type of home
- No proof of income required
- Inferior credit rates are accepted
- Interest rates range between 4.5% – 5.5% depending on term (Again, there is no monthly payment; rather the mortgage interest accrues over the loan and is paid back when you sell or move)
- Terms available include 6 month, 1 year, 3 year, 5 year and variable
- The mortgage is registered as a standard first mortgage charge
- The majority of homeowners end up with more equity when they eventually sell their home due to natural price appreciation
Is A Reverse Mortgage Right For You?
It all depends on what your profile is and what’s important to you. Ultimately, it’s best suited for Candian Seniors who aren’t able to qualify for traditional bank mortgages; but more importantly, do not want to make any monthly payments.