Commons Reason to Use a Reverse Mortgage

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 Blog by Cody Rowe - Mortgage Broker

I wanted to take a moment and share some information with you about a product that is becoming increasing popular with the aging demographic in Canada: the CHIP Reverse Mortgage.

This unique and versatile financial tool offers many benefits to Canadians aged 55+ that no other product can offer.

With the CHIP Reverse Mortgage, you are able to access up to 55%* of the equity in your home, tax-free

The money you receive can be used in a variety of different ways, including:

  • Eliminating debt repayments
  • Increasing your monthly cash flow
  • Helping a child or grandchild
  • Early inheritance
  • Unexpected health care costs
  • Home repairs and improvements
  • A dream vacation
  • Purchasing a vacation property or second home
  • And more!

By accessing the equity in your home, you are able to accommodate any financial obstacles and goals you have, without having to move or sell your home.

One question I often receive is: How does a reverse mortgage work?

A reverse mortgage is a loan secured against the value of your home. However, unlike a traditional Home Equity Line of Credit (HELOC) or a second mortgage, you are not required to make monthly mortgage payments for as long as you live in your home. And, you will maintain ownership and control of your home until you decide to sell.

If you would like to learn more about the CHIP Reverse Mortgage and how it can fit within your financial plan, please feel free to email me back or give me a call. I’d be glad to answer any of your questions and we can determine if this product may be an option for you.



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