If you are a homeowner in Canada and are 55 or older, you may qualify for a reverse mortgage. For many people, one of the most attractive benefits of a reverse mortgage is that you don’t have to make regular payments. You don’t need to pay off the loan until you sell or move out.
With a reverse mortgage, the bank makes monthly payments or a lump-sum payment to you. The amount you qualify for depends on the value and equity of your home, your age, amount of secured debt and property type/location. Reverse mortgages are designed to increase your income so that you can have a much more comfortable retirement.
For the CHIP Reverse Mortgage®, as long as the property is well maintained, and property taxes and home insurance are paid, HomeEquity Bank, the provider of CHIP, guarantees that the borrower will never owe more than the home is worth.