Reverse mortgage solution

With the housing and financial markets on solid footing, some retired Canadians may consider cashing in their growing assets to enjoy vacations and major home renovations. Others, on the other hand, are evaluating tax-neutral solutions like a reverse mortgage to supplement their retirement income.

A CHIP Home Income Plan from HomEquity Bank is a simple and sensible financial solution for any senior aged 55 and over regardless of income, credit history or medical status. Also known as a reverse mortgage, it offers homeowners up to 50 per cent of the value of their home to use as tax-free cash to improve their day-to-day cash flow or finance larger activities like home renovations or family vacations. Furthermore, borrowers have the flexibility to choose how they want to receive the money – either in one lump sum advance or as planned advances over a set period of time and there are no payments required until the home is sold or both homeowners move out.

There are many ways to use home equity through a reverse mortgage:

• Use it to supplement an insufficient monthly income by redeploying a portion the home’s equity into income generating investments.

• Use it to preserve investment assets without worrying about withdrawing RRIFs above the annual minimum or selling non-registered investments to cover living expenses.

• Use it to travel, invest in a hobby or second career, help the kids or hire in-home help.

• Use it to pay off high interest debts and increase monthly cash flow.

CHIP Home Income Plans are provided by HomEquity Bank to senior homeowners with no credit, income or credit qualifications. You can obtain more details by contacting us at 250 862 1806 or [email protected].

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.