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Written on April 25th, 2016

In a nutshell, a CHIP mortgage or “reverse” mortgage is a mortgage that is secured by the client’s principal residence and as long as one of the client’s lives in the house, it never has to be repaid, not even the interest. “CHIP” stands for “Canadian Home Income Plan” by the way; however the lender who does these types of mortgage in Canada is called Homequity Bank.

It is probably easiest to explain using an example: Let’s assume a husband and wife aged 70 and 69 respectively live in a home that has been appraised at $500 000 and has no mortgage on it right now. Based on the value and their ages, CHIP would allow them to borrow up to $195 495 against the house. They do not have to take the full amount and can in fact choose a monthly income supplement. For example they could choose $50 000 in a lump sum and then $1 000 per month for the next 140 months.

So long as one of the applicants remains in the house, they never have to make a payment. If one of the spouses moves to a retirement home and the other stays in the house, they still don’t have to make any payments. Snowbirds also qualify……so long as the house remains your primary residence.

 

See Link For More Details: https://dominionlending.ca/news/blog-posts/what-exactly-is-a-reverse-mortgage/

 

Brought To You By:

 

Dave, Cindy and Amanda Walker

The Walker Real Estate Team

19 Year Emerald Medallion Members

HomeLife Benchmark Realty

#1 1920 152 Street

South Surrey, B.C. V4A 4N6

604-889-5004 or info@WalkerRealEstate.ca

www.WalkerRealEstate.ca

 

Kimberly Walker, Mortgage Broker

Cindy Walker, Licensed Assistant

14 Years Mortgage Experience

Dominion Lending Centers

Valley Specialists

#111 20434 64 Avenue

Langley, B.C. V2Y 1N4

604-889-5004 or cindywalker@shaw.ca

www.WalkerMortgages.ca