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.

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What is a reverse mortgage?

A reverse mortgage is a special type of lending which enables you to access some of the equity built up in your home. It is a tax-free way to pull out some of your home’s equity for you to use as you wish. That means it will not affect any Old Age Security (OAS) benefits or Guaranteed Income Supplement (GIS) government benefits you may receive.

Many choose to use this money to purchase a new home or to take a vacation as they start their retirement. 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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Are you eligible for a CHIP reverse mortgage?

First and foremost, you will want to know whether or not you are able to apply. Reverse mortgages have special conditions that are unlike most other forms of lending

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!

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Benefits of a reverse mortgage

These are unique loans that are only available to homeowners above the age of 55. If you are eligible, a CHIP reverse mortgage offers excellent benefits for someone looking to access the equity in their home. These include:

  • The reverse mortgage is paid out tax-free
  • It will not affect the Old Age Security (OAS) or Guaranteed Income Supplement (GIS) benefits you receive
  • You can use the money in any way you wish
  • There are no regular payments required while you or your spouse live in the home
  • You maintain full ownership and control of your home, as well as all the remaining equity

In essence, a CHIP reverse mortgage is a tool for converting some of your home’s equity into money while still owning the home. Maybe you are not ready to sell your home, but you could use some extra money to pay for a vacation, a new home, or a child’s inheritance. Whatever the case may be, a CHIP reverse mortgage can help you get there faster.

Curious to find out if you qualify? All you have to do is place a call to us and we’ll handle the paperwork to see how much equity in your home is available to you through a reverse mortgage.

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

Will I lose ownership of my home?

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.

Are reverse mortgages risky?

No, in fact reverse mortgages are often recommended by financial professionals as a means of supplementing income instead of relying on a line or credit or mortgage.

How do I receive the money?

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.

Are there any costs involved?

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.

What if I still owe money on my current mortgage?

That’s ok! Reverse mortgages are commonly used to supplement income or pay off expenses such as an existing mortgage.

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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.