Let a reverse mortgage help you take advantage of your retirement years.

Why Consider a Reverse Mortgage

  • For most seniors you are unlocking the value of your biggest asset.

  • You are in complete control of your reverse mortgage, you are the owner of the home, and remain the owner-the lender is simply a first mortgage registered on title, like any other mortgage. After reverse mortgage is repaid, you or your family have all of the remaining equity.

  • You can receive up to 55%, of the value of your home, tax free.
  • It is not added to your taxable income so it does affect Old Age Security (OAS) or Guaranteed Income Supplement (GIS) government benefits you may recieve.
  • You have complete flexibility as to how you receive the payments, for example one lump sum, several lump sum payments, regular monthly payments.
  • There is complete flexibility as to how the funds received can be used. The only condition is that any outstanding loans (ie. existing mortgage or home equity line of credit) secured by your home must be paid out with the proceeds from your CHIP Reverse Mortgage.

  • No payments are required while the homeowner and spouse remain living in the home. All that is required is that property tax, insurance, and maintenance and condo fees are maintained up to date.  Surviving spouses can chose to remain in the home unless they chose to sell.

  • The homeowner keeps all of the remaining equity in the home.

  • No matter the fluctuations in the real estate market, the lender guarantees that the amount to be repaid will never exceed the fair market value of the home at the time it is sold.  This is written right into the mortgage terms.

  • Tax Savings-if it is decided to use the CHIP funds to purchase non registered investments such as GIC’s or mutual funds, you may be able to deduct the CHIP interest charges from the income those investments earn.
  • A senior may carry a mortgage for a very long time - there is no time limit if they remain living in the home. Historically, house prices have tended to increase over time at a greater rate than the slow compounded growth of reverse mortgages, thus allowing equity in the home to remain in the long term.‚Äč

Benefits of a Reverse Mortgage

  • You maintain ownership and control

  • You or your family keep all of the remaining equity

  • Your estate is well protected

  • Flexibilty

  • You can save on taxes

  • You are able to rebalance your assets to use the equity in your home to enhance your retirement

  • No monthly payments are required

Reverse Mortgage vs. Home Equity Line of Credit (HELOC)

The most important difference between a reverse mortgage and a conventional mortgage or line of credit is that the homeowner does not have to make any payments, interest or principal for as long as the homeowner or spouse continues to live in the home.

HELOCs are a good short-term borrowing option for people who can pay the interest and loan in the near future. However, HELOCs are callable loans and there exists significant risk of non-renewal or cancellation. 

In comparison, a reverse mortgage is a long-term financial solution that won’t be called based on economic changes such as interest rates increasing, property values decreasing, or a change in the homeowner’s income. Also, money from a reverse mortgage provides the ability to prolong retirement savings
Let your Certified Reverse Mortgage Specialist help you take advantage of your retirement years. Call 1-855-770-3225, email us at e-mail, or fill in our online application so that we may contact you.