Chip Mortgage
A chip mortgage is specifically for homeowners 55 + allowing them to borrow against the value of their home, without having to sell their home. And, unlike home equity loans or traditional mortgages for example, you do not have to qualify for the mortgage and no credit check. Not to mention you never have to make a payment, until you choose to move or sell.
How Does it Work? With a CHIP Home Income Plan, you can receive up to 50% of the value of your home as cash. And, you can use the money for any purpose you wish – from paying off debts to financing home improvements to covering healthcare expenses.
Despite the fact that reverse mortgages have been around since 1986 there is still alot of misunderstanding.
This product was specifically created for seniors that have equity in their home. It is not necessarily for everyone but there are definitely those individuals that will benefit from this product.
Seniors are living longer, saving less, spending more and carrying more debt due to higher cost of living.
Who will benefit from this program:
Eligibility
Amount
Repayment
How Does it Work? With a CHIP Home Income Plan, you can receive up to 50% of the value of your home as cash. And, you can use the money for any purpose you wish – from paying off debts to financing home improvements to covering healthcare expenses.
Despite the fact that reverse mortgages have been around since 1986 there is still alot of misunderstanding.
This product was specifically created for seniors that have equity in their home. It is not necessarily for everyone but there are definitely those individuals that will benefit from this product.
Seniors are living longer, saving less, spending more and carrying more debt due to higher cost of living.
- Seniors are the fastest growing segment of the population. 1
- 77% of senior homeowner's net worth is locked up in home equity. 2
- 84% don't want to move. 3
Who will benefit from this program:
- Seniors who don't qualify through their bank by traditonal means (ie pension income doesn't qualify for the required mortgage) and/or have poor credit.
- Have debt, but who prefer NOT TO make monthly payments versus traditional lenders (banks) where a mortgage payment is required.
- Seniors who would prefer not to withdraw investment income due to potenital income tax implications. Because the reverse mortgage is a loan, it's not added to your taxable income, so it doesn't affect Old Age Security (OAS) or Guaranteed Income Supplement (GIS) government benefits you may receive.
- Supplement monthly income.
- Help pay for unexpected expenses.
- Seniors who have equity and would like to help gift a down payment but don't have liquid funds available.
Eligibility
- Home owner age 55 and older on principal residence.
- Location and type of home must qualify.
- No Credit Requirement.
- No Income Requirement.
Amount
- Qualify for up to 50% of the home's Value, based on clients age, property area, description and value.
- Funds are not taxed as income.
- Money can be received as a lump sum or planned advances over time.
Repayment
- No payments required until the house is sold or both owners move out.
- Interest options are available.
