1. Reverse Mortgage Canada

Reverse Mortgage Canada

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Turn the equity in your home into cash with a reverse mortgage in BC.

Let our Reverse Mortgage Specialists show you how!

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What is a reverse mortgage?

Reverse Mortgages are a type of lending that allows you access to up to 55% of the equity in your home, without having to sell or make regular payments. A tax-free option, that will not affect any Old Age Security (OAS) benefits or Guaranteed Income Supplement (GIS) government benefits you may receive.

It’s important to note that you maintain full ownership and control of your home, and you will never be asked to move or sell your home to repay a CHIP reverse mortgage.

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Benefits of a reverse mortgage

In essence, a reverse mortgage could be a great option for Canadian homeowners aged 55 or older, with many benefits: 

  • Money can be used for anything you choose (Cover medical expenses, consolidate debt, buy another property or renovate existing property)
  • Only will have to repay if you sell or move
  • No monthly payments
  • Maintain ownership of your property, as well as remaining equity
  • Option to receive funds in a tax-free lump sum or in regular tax-free payments
  • Qualification is not affected by “stress-test”
  • Access up to 55% of your home’s appraised value 

The CHIP Reverse mortgage process is safe and convenient, let Rampone-Marsh show you how a reverse mortgage could help make your dream retirement a reality.

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Are you eligible for a CHIP reverse mortgage?

Are you Eligible for a Reverse Mortgage?

With such a unique type of lending Reverse mortgages also have a unique set of requirements for qualifying.

There are a few prerequisites that must be met to qualify for a reverse mortgage:

  • Homeowners must be 55 or older and live in a province of Canada
  • The appraised value of their home must be at least $150,000

Their secured debt must be less than the reverse mortgage lending amount they are approved for

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Calculating the value of your reverse mortgage

Each reverse mortgage is a loan based on the equity of your home. The age of the applicant is one of the primary factors in determining the amount they are able to collect.

The chart below offers a simplified breakdown of rough estimates on reverse mortgage rates for a husband and wife who own a detached home.

Age | Approximate Loan to Home Value

55 | 11 – 14%

60 | 16 – 21%

65 | 22 – 30%

70 | 26 – 37%

75 | 32 – 44%

80 | 37 – 53%

82+ | 39 – 55%

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To see for yourself, you can try using the calculator available on CHIP’s own website, or just give us a call to get the exact numbers for yourself!

Reverse mortgages shouldn’t be confusing. Here are our answers to your most common questions!

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What are the requirements for a reverse mortgage?

Homeowners must be 55 or older and live in a province of Canada, the appraised value of their home must be at least $150,000 and the secured debt must be less than the reverse mortgage lending amount they are approved for.

Are there any costs to get a Reverse Mortgage?

There are one-time fees for arranging a reverse mortgage, such as the appraisal fee, fee for legal advice, and fee for administration and registration.

Beyond that, there are no monthly payments required as long as the homeowner continues living in the home.

Do I lose ownership of my home with a Reverse mortgage?

You will retain full ownership and title of your home, though you are expected to live in the home and maintain the property, staying on top of property taxes and insurance.

What can I use the money from my Reverse Mortgage for?

The money from your reverse mortgage can be used for anything you choose, some examples are: covering medical expenses, consolidating debt, buying another property, renovating an existing property, or supplementing retirement income.

How do I receive the money from my reverse mortgage?

You get to choose how you want to receive the money, either in one lump sum or through planned advances over a set period of time.

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Talk to your team at Rampone-Marsh Mortgages to start your reverse mortgage application today.

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Start collecting from your reverse mortgage!

Whether you’re kickstarting your retirement or buying a second home, let us help you unpack how a reverse mortgage can help you get there faster.

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