From time to time I am asked about Reverse Mortgages and how they work. Our main partner in this product is ‘CHIP’ or Canadian Home Income Plan.
In order to qualify for a CHIP Reverse Mortgage, both you and your spouse must be at least age 60. The typical borrower who benefits from this program either has his home paid for or has substantial equity. With CHIP, the maximum available mortgage is limited to 40% of your home’s value and the older you are, the greater the percentage you can borrow.
With a Reverse Mortgage, you make NO PAYMENTS! That’s right, the interest portion is added to your balance and you and your spouse can live in the home until you decide to sell or the surviving spouse passes away. This type of mortgage is generally suited to the borrower who needs cash but either cannot, or would prefer not to make payments in their later years.
A Reverse Mortgage is not for everybody, but your Mortgage Professional at The Mortgage Centre will help if this plan is right for you. We’ll give you the valuable advice you need to make a decision about this innovative product and walk you through the process of applying for and completing your CHIP Reverse Mortgage.