A CHIP Reverse Mortgage can be a great way for Canadians, 55 or older, to receive income when the bulk of their equity is tied up in their house. Based on your age, where your property is located, and the type of home, you are able to access up to 55% of the value of your home. The older you are, the more you can access. Unlike a traditional mortgage, there are no income or credit requirements to qualify. The home can be located in a rural community or a city. You don’t make ANY payments, including interest, until you are no longer occupying the home as your primary residence. Because the funds are coming from a loan against your primary residence, the income doesn’t affect your other pension earnings. The money received is TAX FREE. The funds can be taken at once, or in monthly installments, you get to decide how you need them. For example, you can take $40,000 up front and then set up a monthly $2,500 deposit to your account.
To learn more about CHIP Reverse Mortgages, give the professionals at Regional Mortgage Group a call.