Kroemer Mortgages @ Comox Valley BC on Vancouver Island: What can a CHIP (Canadian Home Income Plan-reverse mortgage) do for You?

Sunday, October 21, 2012

What can a CHIP (Canadian Home Income Plan-reverse mortgage) do for You?

CHIP stands for Canadian Home Income Plan.

What is the purpose of this plan?
This plan is a tool for people 55 years or older to take out equity from their house, without having to sell their home and you get to stay in your home

CHIP Eligibility
Homeowners 55 and older
No medical qualification
No income or credit requirements

How much can I get?
Depending on your age, about 50% of the home's value.
Money can be received as a lump sum or over time payments
Funds are not taxed as income
Interest expense may be used to reduce taxes on investment income

Repayment?
No repayment is need until the house is sold or both owners move out

You have the option to repay the principal and interest in full at any time.
Ownership and Title?
Owner maintains Title
You can move or sell at any time
Amount to be repaid is guaranteed not to exceed the fair market value of the home at the time it is sold.

Some scenarios in which a CHIP plan may work?
-You retire your pension is not as good as you thought it would be, leaving you with very little money to enjoy your retirement.
-You retire and still have a small mortgage in which you want the mortgage paid out. Giving you more monthly income
-Your spouse passes away cutting your retirement income in half.
-Your health needs special attention -you need to hire a nurse for in home care, special equipment -walkers , wheel chairs etc. You can pull money (equity) out of your house to pay a nurse to help you, instead of going into a expensive seniors home.
-You and your spouse divorce or separate and you need to payout the spouse for the house
-Repair your home with needed updates and retro fits to suit your comfort and safety in your senior years
-Cannot qualify for a mortgage because retirement income is too low.
- Call me to inquire if a CHIP plan may be useful for you or your senior parents.

As you can see there are many reasons why a CHIP is useful. The main purpose of the CHIP plan is to keep you in your home where you want to be. Each person has unique circumstances, Call me to see if a CHIP plan will work for you. 1.250.650.4182One more reason why a CHIP plan may work better for you
Seniors' homes are expensive, costing around $3000.00/ month. Many seniors want to stay in their family homes where they are most comfortable.

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