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The-Mortgage-Gal

Income from home equity

When retirement funds run low, seniors often ask if tapping into the equity in their home is the right way to retain financial independence. To see if this option might be a good fit for you, consider if you agree with the following statements:
 
  • Staying in my home is critical to the quality of my retirement lifestyle.
  • The idea of renting instead of owning a home bothers me.
  • My income consistently falls short of ongoing expenses.
  • I expect my retirement savings to run out within the next few years.
  • I am comfortable with using the value of my house to fund retirement.
     
If you answered mostly ‘yes’, take a look at a few more details about a reverse mortgage called the CHIP Home Income Plan from HomEquity Bank:

If you have reached age 55, you may be eligible for CHIP.  It lets you convert up to 50 per cent of the equity in your home into tax-free cash.
 
Unlike other loans on the market, there are no credit or income qualifications and you are not required to service the interest, or repay the principal until you choose to move or sell.
 
It is also guaranteed that you will never have to repay more than the fair market value of the house at the time of the sale.
 
When polled by the Brondesbury Group this year, 78 per cent of existing CHIP customers said they would recommend a reverse mortgage to others as a cash-flow solution. Financial advisors and mortgage brokers have details and more information is also available online at www.chip.ca.
 
If you have any questions regarding the CHIP program or would like to take out a CHIP mortgage please call us at (250) 862-1806 or email at [email protected].


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About the Author

Laurie Baird and Tracy Head are mortgage brokers with Verico Complete Mortgage Services. Together they have over 45 years of experience in the mortgage industry.

As mortgage brokers, Laurie and Tracy spend time getting to know the people they work with and help them understand the mortgage process. They support their clients before, during, and after a home purchase.

Laurie and Tracy are able to offer their clients advice and options. With access to over 40 different lenders, Laurie and Tracy are able to match the needs of their clients with the right mortgage package. They work closely with their clients to find the right fit, and are around to provide support for years down the road!

Contact them at 250-862-1806 or visit:
http://www.okanaganmortgages.com

Visit Laurie's blog at: https://www.okanaganmortgages.com/blog



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The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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