The Canadian Home Income Plan – A Mortgage Option for Homebuyers Aged 55+
By Robert Russo, Mortgage Consultant for INVIS
Are you 55+ years of age and do you want to buy a new home and maintain a certain lifestyle during your retirement but cash flow is your primary concern? Do you currently own a home free and clear and want to access the equity for your retirement plans while still not having a mortgage payment? If your answer to these questions is yes, then CHIP (Canadian Home Income Plan), which is precisely designed for homeowners like you!
The CHIP Home Income Plan is commonly known as a reverse mortgage where you do not make any mortgage payment. No principal or interest payments are required for as long as you or your spouse live in your home.
Through the CHIP Home Income Plan, homeowners 55+ can access up to 50% of the current appraised value of their principal residence.
The exact amount available will depend on the age of the homeowner and his or her spouse as well as the location and type of home. Income and credit is never required to approve the mortgage and you can spend the funds any way you wish. You can choose to receive the funds in a lump sum amount or periodic payments.
The loan does not become due until the home is sold or both homeowners move out. Interest is added on to the original amount borrowed. When the amount is repaid, all remaining equity in the home belongs to the homeowners (or their estate).
A CHIP Home Income Plan is a simple and sensible way to unlock the value in your home and turn it into cash to help you enjoy life on your terms.
Here are the facts:
• A CHIP Home Income Plan is a reverse mortgage secured by the equity in your home.
• You do not have to make any payments – principal or interest for as long as you or your spouse live in your home.
• A CHIP Home Income Plan is designed exclusively for homeowners ( & purchasers) aged 55 or older.
• You can receive up to 50% of the value of your home.
• You can choose how you want to receive the money.
• You receive the money tax-free.
• You can use the money any way you wish.
• No payments are required while you or your spouse live in your home.
• You maintain ownership and control of your home.
• You keep all the equity remaining in your home.
• Your estate is well-protected
Robert Russo is a Mortgage Consultant located in Kelowna, BC. He is not an employee nor an affiliate of Mission Group.