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Reverse mortgages

While reverse mortgages have had a bad reputation based on old programs or those offered in the United States, you might be surprised to learn how much they have evolved and improved in Canada. 

Do this sound familiar to you or to someone in your family age 55+?

Plenty of equity in their property, but not enough income to afford retirement?

Still carrying a mortgage in retirement, and finding the payment difficult to manage?

At home, needing some level of care, yet without the income to afford those services?

Want to help children who are having a hard time getting into this expensive housing market, but no liquid cash to help, and unwilling to take on a mortgage payment to do it?

Lost a spouse or had a spouse go into a care home, and need some additional cash flow in order to replace that income and remain in the home?

Going through a divorce or separation, and needing to get money out of the property in order to settle legal matters?

Want to buy a new home or a vacation home, but don’t want to exhaust all savings, or cannot afford a mortgage?

These, along with any other situation in which someone 55+ needs to access the savings they have built up in their home, may be addressed by considering a reverse mortgage.

Highlights of the CHIP program

Homeowners age 55+ will be approved for a credit limit on their property as high as 55% of the value (approval amount depends on age and property type. For example, a client 80+ in a house would get 55%, whereas a 65 year old in a townhouse might only get about 36%.

Limited credit and income qualification may be required, depending on credit score. This is to ensure that clients can pay their property taxes, heat, and strata, if applicable.

Homeowners can access funds available, similar to a credit line, taking money as needed.

There are no payments required, neither principal or interest, for as long as one applicant lives on the property.

Interest accrues on the money advanced, the lender is eventually paid back when the home is sold.

Title stays in the homeowner’s names, and funds are tax free.

CHIP program

Questions or comments, [email protected]

 

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About the Author

Tracy Head and Laurie Baird help busy families find mortgage solutions. Together they have more than 45 years of experience in the mortgage industry.

With today’s increasingly complicated mortgage rules, Tracy and Laurie spend time getting to know the people they work with and help them to better understand the mortgage process. They support their clients before, during, and after their mortgage is in place.

Tracy and Laurie work closely with their clients, offering advice and options. With access to more than 40 different lenders, Tracy and Laurie are able to assist with residential, commercial, and reverse mortgages in order 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 their 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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