Benefits of a Reverse Mortgage
You receive the money tax-free. It is 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.
You can use the money any way you wish. Maybe you want to enjoy your retirement or cover unexpected expenses. Perhaps you want to update your home or help your family without depleting your current savings. The only condition is that any outstanding loans (e.g. existing mortgage or home equity line of credit) secured by your home must be paid out with the proceeds from your CHIP Reverse Mortgage.
Case Study #1 – Jan & Jack
Jan & Jack live in a custom home they built many years ago. Although when they reached retirement they still had a mortgage and inadequate cash-flow to help them make ends meet. After speaking with some friends, they discovered the CHIP Reverse Mortgage. With this financial tool they were able to access $287,000 of their home’s equity, which allowed them to pay off their existing mortgage and invest in solar panels that ended up providing them an extra $500/month. Today, Jan & Jack have paid off their mortgage, have increased their monthly cash flow, and enjoy every day in their dream home.
No regular mortgage payments are required while you or your spouse live in your home. The full amount only becomes due when you and your spouse no longer live in the home.
You maintain ownership and control of your home. You will never be asked to move or sell to repay your reverse mortgage. All that’s required is that you maintain your property and stay up-to-date with property taxes, fire insurance and condominium or maintenance fees while you live there.
Case Study #2 – Violet
Violet has been living in the quaint farm house she grew up in most of her life. She recently helped her children through some financial difficulty and eventually found herself facing a similar challenge. After focusing her financial resources on helping her family while maintaining her aging home and lifestyle, Violet’s bills began to pile up. Although her son returned the favour and paid her property taxes. She still had some outstanding debt that needed to be addressed. Violet wanted to access some money to renovate her kitchen and bathroom, eliminate her debt, and have a little extra income. To help her obtain her financial goals Violet’s mortgage broker suggested a CHIP Reverse Mortgage. She was able to pay off her debt, have enough funds to renovate her home, and give her monthly income a boost. Today, Violet enjoys the home she’s spent most of her life in and lives a comfortable lifestyle without worrying about her finances.
You keep all the equity remaining in your home. On average, 99 out of 100 homeowners have money left over when their reverse mortgage is repaid with the amount left over being approximately 50% of the value of the home when it is sold.
For more information on reverse mortgages please contact Jaret today at 604-816-5988
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