Many Canadians that have reached the age of 55 plus wind up with much of what they own in the equity of their home and any savings they have accumulated. Historically the value of their homes will have grown over the years and makes up the largest portion of their net worth. While it’s a nice cushion the only way to access that equity is by selling their home. Many homeowners are reluctant to do so and this is where CHIP comes in. A CHIP reverse mortgage allows homeowners to convert some of their equity into cash while remaining in their beloved home. Unlike other mortgage based financial products you’re not obligated to make any payments until you choose to move or sell.
What makes this program attractive is participants can only take up to 55% of the value of their homes, which gives them access to the cash they want while still having the security they require.
You’re in Control With a Reverse Mortgage
Homeownership is an achievement someone works hard for and the CHIP program wants to see a person keep their home. With a CHIP reverse mortgage the homeowner remains in control of their home. Anyone enrolled in the program will never put in the position of being forced to sell or move as a result of changing home values or earning power ( remember there are no payments.) A CHIP reverse mortgage guarantees that neither the homeowner or their estate may eventually have to pay will ever exceed the fair market value at the time it is sold. In this way the home will never be a burden to the homeowner or their family.
Your Money, Your Way
Structured in such a way that a CHIP reverse mortgage ensures the homeowner is in control of the way you choose to receive the money. Whether a lump sum is your preference or money overtime it’s whatever the person requires. The option to repay the principal and interest in full is available should a sudden financial windfall occur, or it’s possible to switch to paying interest on an annual basis, it’s within the homeowners complete control.
CHIP is a program that allows Canadians to utilize the equity in their home regardless of current income or health, after all they’ve earned it.
Considering a reverse mortgage, in the GTA contact Rakhi Madan Mortgage Agent for expert mortgage advice.