house
Ghummaz Bhatti

Ghummaz Bhatti

What You Need to Know About CHIP Reverse Mortgage in Canada

Whether you’re faced with debts and expenses that you want to pay off, or you’re just looking to have some extra money to improve your day-to-day life, consider all your options. A Canadian Home Income Plan reverse mortgage, or shortly known as CHIP, may be able to help you reach your financial objectives.

A CHIP reverse mortgage is a loan secured at the cost of one’s home’s value. A borrower essentially gets tax-free money without the need to actually sell their property. The loan is paid back when the borrower chooses to do so or is no longer residing in the home associated with the deal. 

If you’re interested in getting a CHIP reverse mortgage, keep reading to learn the requirements, purpose, and benefits of applying for one. 

CHIP Reverse Mortgage Requirements in Canada 

The Chip reverse mortgage was designed for Canadian homeowners who use their home equity to get some extra cash for their expenses. A borrower can get up to 55% of their home’s value and can be split into monthly or annual payments. Borrowers can also get the money in one go. 

In order to get this mortgage loan, there are two sets of requirements to be eligible. One pertains to the home involved in the transaction, while another relates to the borrower.

The home used in the CHIP reverse mortgage should be the primary residence of the borrower. Along with that, the property value should be a minimum of $150,000. This is often determined by the location, the type of home, and its appraised value. 

Meanwhile, the borrower must be a Canadian resident who is 55 and older. If the property is owned by two people, both need to meet that age requirement to take out a CHIP Reverse Mortgage. Along with that, both are also required to stay on top of their regular property taxes and fees. 

CHIP Reverse Mortgage Purposes

The CHIP reverse mortgage was designed for a borrower to take out money while maintaining their current home. Discuss with your family and a mortgage agent moving forward to understand whether a CHIP Reverse mortgage is the best option for you.

Ideally, the money from this mortgage loan is used by retirees who want to enjoy retirement life, but it can fulfill a variety of purposes. The money can be used to cover debt, medical expenses, leisure expenses, and more. 

CHIP Reverse Mortgage Perks

Applying for a CHIP reverse mortgage goes smoothly because of the minimal requirements it asks for compared to other mortgage loans. Borrowers have the ability to keep the money from their loan and their home at the same time.

This can really help to provide a lot of financial freedom and security at an older age. Without any deductions or the need to consider payments or restrictions, a CHIP reverse mortgage can be a good source of money. 

Conclusion

CHIP reverse mortgage can be a really attractive loan to apply for. You get money from a little over half of the value of your own home to fund whatever you deem fit with seemingly few consequences. 

Need to discuss whether a CHIP reverse mortgage is good for you? Ottawa Mortgage Services can provide mortgage advice to home buyers and owners in Canada. Get a free assessment today!

Contact Ottawa Mortgage Services to learn more

[email protected]

Like & Share on Instagram & Facebook

@ottawamortgageservices

Get Started, sign up and fill out the application: Click Here

Share this post

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on email

Related Articles

Couple Looking at Documents

3 Useful Tips for a Smooth Mortgage Renewal Process

If you were to ask experienced mortgage brokers in Ottawa, such as Ottawa Mortgage Services, you will learn that you must renew your mortgage at least once before paying it off. As the term mortgage renewal implies, it is the process of re-evaluating your mortgage’s outstanding balance. And most importantly,

Read More
refinance mortgage calculator

Debunking Popular Mortgage Refinancing Misconceptions

Interest rates have never been as low as they are nowadays. It’s no surprise that most, if not all, mortgage holders out there have started looking to get refinancing done. Typically, the best way is to go about reaching out to a mortgage specialist in Ottawa.  There are several plans

Read More
working with a mortgage agent

3 Ways a Mortgage Agent Can Help You Get Your Dream Home

Buying a home for the first time can be an incredibly exciting process. You’re finally moving into a place you can call your own, which means you can decorate it to your heart’s content. However, the process of purchasing a home is quite long and complex, especially when looking for

Read More
Shopping Basket