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. For more information click here Rates Mortgage Tips Resources Credit Blog Categories 365 Things To Do In Campbell River 365 Things To Do In The Comox Valley Comox Valley Tidbits and Other Stuff Mortgage Market Updates and News Real Estate For Sale By Owner Recent Posts What can a CHIP (Canadian Home Income Plan-reverse mortgage) do for You? Comox Valley takes its place in the history book Harvest dinner in Cumberland Sunday Banff Mountain Films return with tale of survival CHARITY YARD HAUNT

CHIP's New Lower Rates

CHIP's New Lower Rates
-55 years and up
-want equity out of your house to live, travel, investments, etc.
-rates start as low as 4.25% for new customers
-til August 31 2012
-APR 5.29%

My CHIP Tools A CHIP Home Income Plan is a reverse mortgage that is the simple and sensible way to unlock the value in your home and enjoy life on your terms. You can use this "My CHIP Tools" section to find out if you and your home are eligible, how much money you could get, and how much equity you would have left in your home after the CHIP Home Income Plan was repaid. Am I eligible? Find out right away if CHIP is offered in your area and if you and your home qualify for a CHIP Home Income Plan. How much money could I get? The amount you can receive up to 50% of your home's current appraised value. The exact amount available to you will depend upon a number of factors, including your age and the age of your spouse, the value of your home, where your home is located, and the type of dwelling. This tool will show much money you may be eligible to receive. Future Equity Calculator Use the Future Equity Calculator to determine how much equity could be remaining in your home when your CHIP Home Income Plan is repaid. The calculator predicts future market value of your home based on user-selected home annual appreciation rates. CHIP provides an interest rate discount if you choose to pay your full annual interest. The interest rate discount is 0.50% and is factored into this calculation.

 For more information  http://comoxvalleymortgagestoday.com/custom1.asp

Call or Text  250.650.4182





Angela Kroemer, AMP
Mortgage Professional
TMG The Mortgage Group Canada Inc.
TMG Sharie Marie Mortgage Team

1.250.650.4182
akroemer@mortgagegroup.com
www.KroemerMortgages.com

Your Mobile Mortgage Professional in The Comox Valley

Facebook Page https://www.facebook.com/#!/akroemer

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Canadian Home Income Plan

This week I learnt about the CHIP plan and now I am pleased to be able to offer it to all my past, present and future clients.

CHIP stands for Canadian Home Income Plan.  In a nutshell it is a plan for seniors (55 and up) who own their homes, are able to borrow equity from their homes and use the equity for anything they like.
As you read the information below and find you may be interested in this plan contact me and we can see if this will work for you.

akroemer@mortgagegroup.com
www.comoxvalleymortgagestoday.com
1.250.650.4182


More information below:

ABCs of CHIP

Wouldn't it be nice if you had the money to do more of the things you want to do? A CHIP Home Income Plan could be just what you need. It's the simple and sensible way to unlock the value in your home and turn it into cash to help you enjoy life on your terms.

Let us introduce you to CHIP - Canada's leader in reverse mortgages:

A CHIP Home Income Plan is a reverse mortgage secured by the equity in your home. Unlike a traditional mortgage in which you make regular payments to someone else, a reverse mortgage pays you.

The big advantage with CHIP is that you do not have to make any payments – principal or interest - for as long as you or your spouse live in your home. That's what has made reverse mortgages such a popular solution in Canada, the U.K., the U.S., Australia and other countries.

A CHIP Home Income Plan is designed exclusively for homeowners age 55 and older. This age qualification applies to both you and your spouse.

You can receive up to 50% of the value of your home. The specific amount is based on your age and that of your spouse, the location and type of home you have, and your home's current appraised value.

You can choose how you want to receive the money. CHIP gives you the option of receiving all the money you're eligible for in one lump sum advance, or you can take some now and more later, or you can receive planned advances over a set period of time. You can even combine a lump sum advance at the beginning with ongoing advances over time.

Rebalancing Assets of $400,000

You receive the money tax-free. It is 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.

You can use the money any way you wish. Maybe you want to build up your savings or cover unexpected expenses. Perhaps you want to update your home or help your family without depleting your current savings. The only condition is that any outstanding loans secured by your home must be retired with the proceeds from your CHIP Home Income Plan.

No payments are required while you or your spouse live in your home. The full amount only becomes due when your home is sold, or if you move out.

You maintain ownership and control of your home. You will never be asked to move or sell to repay your CHIP Home Income Plan. All that's required is that you maintain your property and stay up-to-date with property taxes, fire insurance and condominium or maintenance fees while you live there.

You keep all the equity remaining in your home. In our many years of experience, 99 out of a 100 homeowners have money left over when their CHIP Home Income Plan is repaid. And on average, the amount left over is 50% of the value of the home when it is sold.

Your estate is well protected. We guarantee that the amount to be repaid will never exceed the fair market value of your home at the time it is sold. If your heirs want to keep your home, they can repay the CHIP Home Income Plan from other funds.



You can save on taxes. If you decide to use the money you receive to buy non-registered investments such as GICs and mutual funds, you may be able to deduct the CHIP Home Income Plan interest charges from the income those investments earn. Be sure to consult a financial or tax advisor.

Posted Rates: Our interest rates start at just 4.75%

We have a variable rate option with no fixed term or if you prefer a fixed rate, we can offer you six-month, one-year, three-year, or five-year terms. Your interest rate will be based on the length of term you choose.

				Annual Percentage Rate (APR) *
Term	Rate	Effective	Reset Date	10 Years	5 Years	3 Years	1 Year
Variable Rate	4.75%	September 9, 2010	As Posted Rate Changes	4.88%	4.98%	5.11%	5.82%
6 months	4.90%	September 9, 2010	March 15, 2012	5.03%	5.13%	5.27%	5.97%
1 year	4.99%	February 14, 2011	September 1, 2012	5.12%	5.22%	5.36%	6.06%
3 years	5.45%	August 25, 2011	September 20, 2014	5.90%	6.00%	6.13%	6.85%
5 years	5.95%	August 25, 2011	September 5, 2016	6.41%	6.51%	6.65%	7.36%

* APR is based on a CHIP Home Income Plan of $150,000.The annual percentage rate (APR), is calculated as the rate of interest of the plan plus closing costs.

Rates are subject to change and will be posted on this site.

You can lower your borrowing costs with an interest rate discount.

• Interest payment discount - if you choose to pay your full annual interest, you will receive a 0.50% discount for the following year. You can pay in a single lump sum or make regular payments.

You have a number of payment options.

• No principal or interest payments are required for as long as you or your spouse live in your home.
• You can choose to pay all or part of the annual accrued interest ($1,000 minimum/year) without signing up for the interest payment discount plan. You can pay once every calendar year when it's convenient for you. If you pay the full year's accrued interest, you will qualify for a 0.50% discount on your next discount review date.
• The full amount only becomes due when you and your spouse pass away, when the home is sold, or if you both move out.
• You have the option to repay the principal and interest in full at any time. When you repay, an interest rate differential may apply. If you repay within the first three years, a prepayment amount will apply. These may be waived or reduced in the event of death or a move to a long-term care facility or retirement residence.

Set-up costs

Appraisal Fee

• Typically from $175 to $400 as an out-of-pocket cost.
• Actual amount varies by province and for urban and rural properties.
• Request for an independent appraisal is ordered through CHIP.

Independent legal advice is required

• Typically $300 to $600 as an out-of-pocket cost.
• Price range assumes no title issues.
• At your request, CHIP can provide a list of legal advisors in your area.
• It is recommended that you discuss fees with the legal advisor before proceeding.

Legal, closing and administrative costs

• Costs are $1,495 for all of our interest rate options.
• These costs will be deducted from your CHIP Home Income Plan funds so they are not an out-of-pocket expense.
• Includes title search, title insurance and registration.

http://www.chip.ca/index.cfm?id=103