Questions?
(NC) – With the housing market rebounding, many Canadians aged 60 and older are living in homes that are mortgage-free and ready to fetch top dollar. Still, while many aren’t interested in selling just yet, some seniors don’t have sufficient income to do the things they want, despite years of saving.
A CHIP Home Income Plan from HomEquity Bank is a simple and sensible financial solution for any senior aged 60 and over regardless of income, credit history or medical status. Also known as a reverse mortgage in Canada, it offers homeowners up to 40 per cent of the value of their home to use as they see fit. They can choose how they want to receive the money – either in one lump sum advance, or as planned advances over a set period of time. Homeowners can even combine a lump sum advance at the beginning with ongoing advances over 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 released by a reverse mortgage in Canada:
- 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 debts and increase monthly cash flow
Whatever reason you choose, remember one thing: it’s your retirement, so enjoy the benefits that a reverse mortgage can bring.