CHIP saved us!
We are extremely blessed to have come across the CHIP reverse mortgage. It has not only relieved our anxiety but also gave us peace of mind during a tough time.
If you’re like many other 55+ Canadians, much of what you own fits into two categories – the equity in your home and the money you’ve saved. Chances are, the value of your home has grown over the years and makes up a good portion of your net worth. While having a home that has built value is a positive, you typically can’t spend that value unless you sell it. And that’s something many homeowners simply do no want to do. That’s where CHIP comes in. A CHIP Reverse Mortgage lets you change the home equity and savings balance by turning some of your equity into cash. Unlike many mortgage-based financial products, you’re not obligated to make any payments until you choose to move or sell.
No monthly mortgage payments are required. The loan and accumulated interest are repaid only when the home is sold or the homeowner moves out permanently.
Homeowners aged 55+ can access up to 55% of their home’s appraised value in tax-free cash. The exact amount depends on factors such as age, home location, type, and appraised value.
CHIP Reverse Mortgage offers both fixed and variable rate options. Fixed rates provide stability, while variable rates fluctuate with the Bank of Canada’s prime rate.
To qualify for a CHIP Reverse Mortgage, you must meet the following criteria:
Age Requirement: You and your spouse (if applicable) must be at least 55 years old.
Home Ownership: You must own your home, and it should be your primary residence, meaning you live there for at least six months each year.
Property Type and Location: Eligible properties include single-family homes, townhouses, and condominium apartments. The location and condition of your home can influence the loan amount.
When applying, you’ll need to provide:
Identification: Two pieces of valid ID for each borrower.
Proof of Residence: Documents verifying the property is your principal address.
Property Details: Recent property tax statements and proof of up-to-date payments.
Existing Debt Information: Statements for any debts secured against your home, as these must be settled with the reverse mortgage funds.
No health checks are required for eligibility.
For personalized advice and detailed information, it’s recommended to consult directly with a CHIP Reverse Mortgage specialist or visit the official HomeEquity Bank website.
The CHIP Reverse Mortgage application process involves several steps, typically spanning 3 to 4 weeks from initial consultation to fund disbursement. Here’s an overview:
Initial Consultation: Begin with a phone meeting with a CHIP Reverse Mortgage specialist to discuss your needs and assess eligibility.
Home Appraisal: Schedule an appraisal to determine your property’s current market value.
Loan Offer: Based on the appraisal and your profile, the specialist will confirm the amount you qualify for.
Legal Consultation: Obtain independent legal advice to ensure you fully understand the terms.
Documentation: Sign the necessary documents with your lawyer.
Fund Disbursement: Once all documents are processed, funds are released to you.
Repayment Process
There are no monthly mortgage payments required. The loan and interest are repaid when the homeowner sells the home, moves out permanently, or passes away. The estate has up to 180 days to settle the balance. Early repayment is allowed but may incur fees.
We are extremely blessed to have come across the CHIP reverse mortgage. It has not only relieved our anxiety but also gave us peace of mind during a tough time.