What do you see when you sit down and imagine your retired self?
For many people they see themselves relaxing in their home without many worries. While this is the dream, the reality is that people can be in for an unexpected surprise.
A Canadian Home Income Plan is a reverse mortgage solution that helps people who are 55 years old and older experience the joy of having more financial flexibility without the need to move or sell their home.
As a Barrie mortgage professional, I have had many clients in the past who came to me because they were hit with unexpected expenses or weren’t prepared for the sudden drop in income once they retired. I help these individuals by setting them up with our CHIP Reverse Mortgage program that is designed to help seniors prepare for retirement. This program has helped thousands of individuals over the past 25 years.
With a CHIP Reverse Mortgage you will keep all of the equity remaining in your home. The total amount of equity that is left will depend on how much you borrow in addition to the amount of time that has passed since beginning the reverse mortgage and the value of your home. 99% of the time, there is always equity left when the borrower leaves the program. It works by giving you up to 50% of your home’s value, ensuring you are equipped with financial security and access to cash.
You will also keep the title and ownership of your home, just as you would with a traditional mortgage. What this means is that you won’t have to move or sell until you want to do it, and the bank will never own your home as long as you remain in good standing by keeping your taxes paid and the home in good condition.
One reason people tend to shy away from reverse mortgages is because they automatically think they will be ineligible due to a bad credit rating or no income. This is not the case, and you certainly are able to qualify if you have no income or a poor credit score.
A CHIP Reverse Mortgage will allow you to keep your retirement savings for a longer period of time. This is possible because it’s a fantastic way to provide yourself with increased financial flexibility with tax-free money. Additionally, no monthly payments are required and the only time you will be asked to pay is when you choose to move or sell the home.
For even more reading on CHIP, you can check out the chip.ca website.
Is a CHIP Reverse Mortgage a good fit for you? If you are 55 years old or older and interested in what a reverse mortgage can offer you, this could be the perfect mortgage solution for you.
It’s important that you are prepared for what retirement can bring financially so you can enjoy it as you should – relaxing without a worry. If you think a reverse mortgage in Barrie could be a fit for you, I encourage you to contact me as I would be happy to discuss how we can work together to get you into position for financial success in both the short term and long term.
