Your Money, Your Way

After the initial set up, during the length of the mortgage no monies have to be repaid until the house is sold or you move out at which case the mortgage becomes due. 

You will never be asked to move or sell your home.  Home ownership remains with you.  This is an incredible benefit for those people who want to have a bit of extra money available now but wish to stay in their home. 

Also further flexibility comes from the fact that you can decide how you want to receive the funds – as one lump sum, as several lump sums over time at your request, as scheduled regular payments or a combination of both lump sum and planned regular payments.  You are approved for your maximum loan amount and thereafter you decide how much and when you would like your funds.  Only the amount actually borrowed attracts interest, not the amount you are approved for. 

There are no stipulations on you as the borrower as to how the funds are used, this is totally up to you.  

There are now different mortgage products lines which are both reverse mortgage options.  While they look very similar there are a few differences between the two options.

Under this reverse mortgage product you can receive your funds all up front, or in lump sums over time.

Single Lump Sum: 100% of Funds advanced at the outset, or

Initial Lump sum with Subsequent Advances 

Note the minimum initial advance is $25,000, and $5,000 for each subsequent advance

 

The Income Advantage Option allows borrowers to have two separate loan accounts within their reverse mortgage product - one portion for lump sum withdrawals, the other for regularly scheduled, pre-planned advances. 

Planned Advance Account:  A variable interest rate account for regularly scheduled advances, either monthly or quarterly.  A minimum withdrawal of $1,000 per month or $3,000 per quarter is required. Funds can be direct deposited for your convenience.
 
Lump-Sum Account: A fixed or variable rate interest account with money received as an initial lump sum and advances as needed but each subsequent advance must be at least $5,000. 
 
If you do not schedule planned advances, a minimum $20,000 initial advance is required.
 


The Chip Max product is offered in major urban centres in Alberta, British Columbia, Ontario and Quebec.  Like the reverse mortgage product you can receive yoru funds all up front or in lump sums over time.  The primary difference is that there is opportunity to receive a higher loan amount albeit with slightly higher interest rates. 

Single Lump Sum: 100% of Funds advance at the outset, or 

Initial Lump sum wiht Subsequent Advances

Note the minimum initial advance is $25,000, and $5,000 for each subsequent advance



This mortgage product is primarily a short-term mortgage solution that has the flexibility to convert to a CHIP Reverse Mortgage is a longer-term solution is deemed necessary.   No prepayment penalty charges apply if the mortgage is repaid in full.

Single Lump Sum: 100% of Funds advanced at the outset, or

Initial Lump Sum with Subsequent Advances

Note the minimum initial advance is $25,000, and $5,000 for each subsequent advance