How to QualifyPayment Options and Set Up Costs

Flexibility in Mortgage Advances and Payments

  • Unlike a typical equity loan or line of credit, there are no required monthly payments.
  • There are no health qualification requirements.  
  • You are not affected by any increase in financial or health care expense, or the passing of a spouse.
  You have complete flexibility in deciding how the funds are advanced, and how much you want to borrow, up to the maximum allowable limit.

Prepayment Options Available:

You can opt to make interest payments to keep the outstanding mortgage balance from increasing, although this is not necessary and you can chose to never make an interest repayment until the mortgage is fully repaid.

  • You can prepay up to the first 10% of outstanding principal and interest made within thirty days following each anniversary date, without penalty.
  • After 5 years of receiving the initial advance you can repay all or part of your mortgage without penalty within 30 days of your interest rate reset date.  
  • Prepayment of the mortgage beyond these criteria will attract a prepayment penalty similar to a conventional mortgage.
 With a CHIP Open product, the mortgage is repayable without penalty if paid in full (partial prepayments are not allowed). 

Set Up Costs

•   Home appraisal-typically $300 to $600 (for most properties)
•   Independent Legal Advice-$500-$900 (estimated and does not include extra legal work that may be required)

•   Closing and Legal Costs - $1,795 for the CHIP Reverse Mortgae and CHIP  Max products, $2,495 for the Income Advantage product and the greateer of $2,995 or 1.25% of the loan amount for the CHIP Open product*. These fees can be deducted from the reverse mortgage funds – therefore, not an out of pocket expense.

*Note that if there is secondary financing required behind the reverse mortgage then the closing cost and legal fees are subject to increase.

All of the above are one-time fees. There are no annual fees, service charges, etc.  Given that for many borrowers the only up front payment they need to make is to pay for the appraisal, many borrowers find the one time set up costs affordable and easy to manage.

To begin the process it is as simple as calling 1-855-770-3225, sending us an e-mail, or filling in our online application so that we may contact you.

Mortgages for Seniors is an authorized partner with HomEquity Bank, provider of the CHIP Home Income Plan and Income Advantage, and we are Certified Reverse Mortgage Specialists and licenced mortgage brokers specializing in financing for seniors.