Reverse Mortgage Benefits
A CHIP Home Income Plan is a loan
secured by the equity in your home.
The big difference with the CHIP Home
Income Plan is that you do not have to
make any payments – interest or principal for
as long as you or your spouse live in your home.
You maintain ownership and control of
your home while enjoying all the benefits
of having converted some of its value into
cash. For all these reasons, a CHIP Home
Income Plan is a sound financial solution
for many people.
How Does a Reverse Mortgage Work?
2. You can receive up to 40% of the
value of your home. The specific
amount is determined by the current
appraised value of your home, your age
and that of your spouse, and the location
and type of home you own.
3.You receive the money tax-free.
Because it’s a loan, it’s not added to your
taxable income, so it doesn’t affect Old
Age Security (OAS) or Guaranteed
Income Supplement (GIS) government
benefits you may receive.
4. No payments are required while you
or your spouse live in your home. The
full amount only becomes due when your
home is sold, or if you move.
5. You maintain ownership and control
of your home. You will never be asked to
move or sell to repay your CHIP Home
Income Plan. All that’s required is that you
maintain your property and stay up-to-date
with property taxes, fire insurance and any
condominium or maintenance fees.
6. You keep all the equity remaining in
your home. In our experience, 99 out of
I00 homeowners have money left over when
their CHIP Home Income Plan is repaid. And
on average,the amount left over is 50% of
the value of the home when it is sold.
7.Your estate is well protected. We
guarantee that the amount to be repaid
will never exceed the fair market value
of your home at the time it is sold.
8.You can save on taxes. If you decide
to use the money to buy non-registered
investments such as GICs or mutual funds,
you may be able to deduct the CHIP
Home Income Plan interest charges from
the income those investments earn.
View on-line brochure here.
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