How Does a Reverse Mortgage Work?
A reverse mortgage works by offering a safe solution for Canadian homeowners age 55+ to access their home equity and turn it into tax-free cash without the requirement of monthly mortgage payments. Unlike a traditional mortgage, with the reverse mortgage, you will not need to make any principal or interest payments until you and your spouse leave the home. Access cash up to 55% of the value of your home.
Reverse mortgages have been in Canada since 1986, backed by Equitable Bank or Home Equity Bank's - Canadian Home Income Plan "CHIP," reverse mortgages have the reputation and stability that homeowners want so they can be comfortable knowing that their home equity is being put to good use.
Why Get a Reverse Mortgage?
- No payments are required unless you choose to move or sell.
- Pay off your current mortgage and debts or get cash for renovations or to gift down payments to your children for their 1st house. .
- Create a tax free income stream to maintain your lifestyle and build wealth without affecting without affecting government benefits and your investments continue to grow.
- Retain title to your home, you own it until you leave, credit score and income are not usually a factor
- Surviving spouses can choose to remain in the home without having to make a payment or re-qualify.
- You can never owe more than your home is worth, negative equity guarantee.
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