CHIP Reverse Mortgages By Jodie Erwin
For most individuals, once they cross the retirement age, their financial flexibility reduces significantly as they no longer have a steady paying job. This can cause them to stress out over pending debt payments, unexpected expenses, and the cost of maintaining their current lifestyle. Fortunately, there are different financial solutions specifically designed to help these individuals cope with their goals and expenses after retiring.
One of the best financial plans available to the retiring citizens of Canada is the CHIP reverse mortgage (previously known as the Canadian Home Income Plan). This mortgage program is designed for homeowners in Canada who are fifty-five years and older and want to live their retired life on their own terms. The CHIP program allows them to access the equity in their home to cover different types of purchases and expenses.
How does the CHIP reverse mortgage work?
With the CHIP reverse mortgage, homeowners who are fifty-five and older can access up to 55% of their home’s value. The money obtained through this mortgage is tax-free and doesn’t require you to make monthly mortgage payments until you sell your house or move. Similarly, availing of cash through this program doesn’t affect your Old-Age Security or Guaranteed Income Supplement (GIS) benefits. The only requirements you need to meet are the specified age, be the legal owner of the house you’re living in, maintain your property, and stay current with your home insurance and property tax.
What are the benefits of the CHIP reverse mortgage?
The most significant benefit of applying for a CHIP reverse mortgage is that it improves your monthly cash flow so that you can:
1. Pay off existing debt
2. Renovate your house
3. Cover monthly expenses
4. Make a purchase or cover travel expenses
Other benefits include tax-free cash over time or all at once (depending on how you utilize the funds available to you) and zero repayment transactions until you decide to move or sell your property. You also get to maintain ownership of your home without having to move or sell the property.
For more details on CHIP reverse mortgages, reach out to Jodie Erwin, a renowned mortgage broker in Cambridge, ON. You can either give me a call at (519) 212-7825 or email me at email@example.com with all of your questions and doubts. I will accordingly schedule a consultation with you and help you acquire the information you need to determine if a CHIP reverse mortgage is perfect for you or if you could benefit from refinancing or another form of mortgage funding.
I’ve been a mortgage broker for over five years now, and I possess the necessary skills and knowledge to help you with your financial needs. Moreover, I am an approachable individual with an authentic passion for helping my clients achieve the results that they are after. That means I not only offer my clients mortgage options but also educate and advise them based on their current situation.