CHIP Reverse Mortgage
Get tax-free cash from your home equity without any monthly payments.
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Learn Everything About Reverse Mortgages in Canada.
Discover all the facts about a reverse mortgage allowing you to make an informed and educated decision.
Thinking about getting a reverse mortgage in Canada? Read our detailed in-depth guide first.
There's a lot of information out there about reverse mortgages, and we want to make sure that you understand the advantages and disadvantages and more importantly, is securing a reverse mortgage right for you!
You'll learn all the important facts about a reverse mortgage. Including what a reverse mortgage is and is not. The difference between a CHIP Reverse Mortgage and other lenders.
You'll learn how a reverse mortgage broker can help you can be your best resource in securing a Canaidan reverse mortgage.
Written by a Lawyer with a passion for helping seniors improve their financial circumstances, our deep dive into reverse mortgages will leave you informed and educated to make the right decision for you and your family.
Don't make such a large decision without knowing the full truth!
What Is a CHIP Reverse Mortgage?
A CHIP Reverse Mortgage allows homeowners in Canada aged 55+ to access up to 59% of their home equity.
No monthly payments are required and the loan does not need to be repaid until you sell your home, move or pass away.
The money you receive can be used for any purpose and can be paid to you as a lump sum, or installments. The money received is tax-free.
How a CHIP Reverse Mortgage Can Help
Use your tax-free proceeds from your reverse mortgage any way you like.
Manage Debt After Retirement
Stop Working and Retire Comfortably
Maintain Your Standard of Living
Take Retirement to the Next Level
SPEAK TO A REVERSE MORTGAGE ADVISOR
1 (855) 999-3244
How Does a CHIP Reverse Mortgage Work?
A CHIP Reverse Mortgage loan amount is determined by your age and the value of your home. An independent appraisal is conducted in order to determine the current market value of your home.
Low income or bad credit is not a factor in determining eligibility for a CHIP Reverse Mortgage. Even if you sill carry a mortgage, you can qualify for a reverse mortgage.
One of the benefits of a reverse mortgage is that any supplemental government income you're currently receiving like your pension is not affected by a reverse mortgage.
Other mortgage products require monthly payments, but with a CHIP Reverse Mortgage, there are no monthly payments as long as you continue to live in your home.
The funds you receive are tax-free.
A reverse mortgage loan is structured in such a way so that you never owe more than the value of your home.
A CHIP Reverse Mortgage is a great way for seniors to increase their monthly income or access the money they need for other purposes.
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Why Use RetireBetter To Get A CHIP Reverse Mortgage?
With our access to low reverse mortgage rates not available to the public, we can save you thousands of dollars in interest.
We can help you secure larger reverse mortgage approvals than you could get on your own.
We can reduce your initial setup costs by up to $500.
As a reverse mortgage broker, we have the experience and knowledge to make the process stress-free for you.
Our CHIP Reverse Mortgage Process
RetireBetter makes it easy to get a CHIP reverse mortgage
Speak to a Reverse Mortgage Specialist
Explore your options with no obligations
Decide How You Want to Receive the Funds
Funds can be received in a lump sum or over time.
Sign Your Documents
We get all the paperwork ready for you to sign.
Enjoy Your Retirement
Enjoy your tax-free, payment-free reverse mortgage for life.
SPEAK TO A REVERSE MORTGAGE ADVISOR
1 (855) 999-3244A CHIP Reverse Mortgage is great tool to help seniors financially, but it's not right for everyone. Here are some pros and cons to a CHIP Reverse Mortgage.
Reverse Mortgage Advantages
Cash received is tax-free and will not affect your CPP/OAS
No monthly payments
Stay as the owner of your home
Use the proceeds any way you like
Flexible ways to receive cash
Low income or bad credit is ok
No changes if a spouse dies
Reverse Mortgage Disadvantages
All homeowner must be 55 years or older
Must be your primary residence
Minimum $250,000 home value
Higher interest rate than HELOC's and traditional mortgages- May reduce home equity in the long term
CHIP Reverse Mortgage Calculator
Find out how much of your home equity you can potentially access using our reverse mortgage calculator. It takes into account the variables required to provide a reasonable estimate.
CHIP Reverse Mortgage Rates
Interest rates on a CHIP Reverse Mortgage are slightly higher than a standard mortgage and Home Equity Line of Credit interest rates.
This is due mostly because no monthly payments are ever required and any homeowner over the age of 55 can qualify for a CHIP Reverse Mortgage, even those with bad credit or no income.
A general rule is that CHIP Reverse Mortgage rates are 2-3% higher than standard mortgage rates and 1-2 % higher than Home Equity Line of Credit rates.
The term of a CHIP Reverse Mortgage loan is similar to that of a standard mortgage; you can choose a term that ranges from 6 months to 5 years.
Your CHIP Reverse Mortgage interest rates can use fixed or variable rates. Speak to reverse mortgage specialist to find out what the best option for you is.
Reverse Mortgage Learning Center
In-depth articles that help you understand everything you need to know about a reverse mortgage.
The Complete Guide to a Reverse Mortgage in Canada
Get instant access to our book that explains in detail everything you need to know about a Reverse Mortgage in Canada. Get expert insights on reverse mortgages that you won't find anywhere else.
Frequently Asked Questions
Find answers to common questions we receive about CHIP reverse mortgages
CHIP Reverse Mortgage rates are available in both fixed and variable rates. A variable rate fluctuates and is based on the Bank of Canada prime rate. Fixed rates are set for a pre-determined period of time such as 6 month, 1 year or 5 year period.
CHIP Reverse Mortgage closing fees can vary but are always disclosed to you in writing in advance. These fees are approximately $2000 and can be paid from the loan proceeds without being an out of pocket expense for you.
When the homeowner passes away, your heirs will be responsible for repaying the reverse mortgage just like a regular mortgage. Your family will be given up to 6 months to repay the CHIP Reverse Mortgage loan.
Provided you continue to be the homeowner, you can renew your CHIP Reverse Mortgage at the end of each term. You can choose any new term from 1 to 5 years at the interest rates currently available.
Funds can be distributed in a variety of ways including lump sum, monthly allowances, or a combination of both. The choice is yours based on your individual needs and goals. A Reverse Mortgage Specialist can help you choose what's best for you.
You have the option to make payments towards your reverse mortgage anytime you like, While no monthly payments are required, the full amount owing must be paid back when you move, sell your home, or pass away.