What is the CHIP Reverse Mortgage?

CHIP is a reverse mortgage, a loan secured against the value of your home. It lets you unlock the value in your home without having to sell or move away. The money you receive is tax-free and yours to use as you wish.

  • Pay off debts

  • Handle unexpected expenses

  • Help your children or grandchildren

  • Improve your day-to-day standard of living

  • Make a special trip or purchase

Benefits of CHIP

Keep your home. Stay in your home and community. Maintain complete ownership and control of your home for as long as you choose to stay.

No payments. With CHIP you never make a payment until you decide to move or sell.

 

Relieve financial stress. Use up to 55% of the equity in your home to pay off debts or handle unforeseen expenses.

Enjoy retirement. The money you access through CHIP is tax-free.

 

Take control. Get your finances under control and gain the freedom to set your own plans and priorities.

How CHIP works

Who can qualify?

  • Canadian homeowner

  • Over age 55

  • Own your home

  • It’s your primary residence

 

**No health check required

 

Learn more about how a reverse mortgage works in Canada Contact me for more information. 

1. Decide whether CHIP is for you.

  • Weigh the options with your family and advisors.

 

2. Receive your money.

  • Get up to 55% of your home’s appraised value, tax-free.

 

3. Enjoy.

  • No payments, no restrictions. You maintain ownership and control of your home1
    When you decide to move or sell, the proceeds of the home sale repay your loan. The equity left over after repayment is yours.

 

1 As long as you keep your property in good maintenance, pay your property taxes and property insurance and your property is not in default.

Contact me today if you have any questions or if you’d like to see how much you can get!

Frequently asked questions

How does a CHIP Reverse Mortgage work?


A CHIP Reverse Mortgage is secured by the equity in your home. Unlike a traditional mortgage in which you make regular payments to someone else, a reverse mortgage pays you.

The big advantage with the CHIP Reverse Mortgage is that you do not have to make any regular mortgage payments for as long as you or your spouse lives in your home. That’s what has made reverse mortgages such a popular solution in Canada, the U.K., the U.S., Australia and other countries




Who is it for?


The CHIP Reverse Mortgage is designed exclusively for homeowners age 55 and older. This age qualification applies to both you and your spouse.




How much can I get and how is it calculated?


You can receive up to 55% of the value of your home. The specific amount is based on your age and that of your spouse, the location and type of home you have, and your home’s current appraised value. You can contact me and I can quickly give you an estimate of how much you may be approved for.




How do I receive the money?


You can choose how you want to receive the money. The CHIP Reverse Mortgage gives you the option of receiving all the money you’re eligible for in one lump sum advance, or you can take some now and more later, or you can receive planned advances over a set period of time. Planned advances are available on the Income Advantage product.




Will the homeowner owe more than the house is worth?


The homeowner keeps all the equity remaining in the home. In our many years of experience, over 99% of homeowners have money left over when their loan is repaid. The equity remaining depends on the amount borrowed, the value of the home, and the amount of time that’s passed since the reverse mortgage was taken out.




Will the bank own the home?


No. The homeowner retains title and maintains ownership of the home. It’s required for the homeowner to live in the home, pay taxes on time, have property insurance, and maintain the property in good condition.




What if the homeowner has an existing mortgage?


Many of our clients use a reverse mortgage to pay off their existing mortgage and debts.




Should reverse mortgages only be considered as a loan of last resort?


No. Many financial professionals recommend a reverse mortgage to supplement monthly income instead of selling and downsizing, or taking out a conventional mortgage or a line of credit.




What fees are associated with a reverse mortgage?


There are one time fees to arrange a reverse mortgage such as an appraisal fee, fee for independent legal advice as well as our fee for administration, title insurance, and registration. With the exception of the appraisal fee, these fees are paid for with the funding dollars




What if the homeowner can’t afford payments?


There are no monthly payments required as long as the homeowner is living in the home