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26 Nov

Reverse (CHIP) Mortgages

General

Posted by: Trish Pigott

We have just been through the certification program with Home Equity Bank and are happy to answer any questions you may have with the CHIP product.  This is a great option for clients when they want to remain in their home but access equity to purchase rec properties, investment properties, help family purchase a home or consolidate debts and just have some extra cash.

Here’s a few details about it:

  • Great for pensioners that have a large amount of equity but low monthly income
  • No mortgage payments need to be made as long as they live in the home
  • Available for home owners over 55 years of age
  • Available for condo’s, townhouses and detached homes
  • Must live in the property
  • Interest rates range from 6-6.5%
  • Applicants do not have to go through the government stress test
  • Income qualification is not required
  • Set up fees are $1,795 for the legal process and about $300 for appraisal
  • Mortgage can be set up to payout in a large lump sum or clients can draw a regular monthly payment to help with the cost of living and enjoy life doing what they want
  • Very simple process with minimal paperwork required