What is CHIP reverse mortgage?

Posted on 27 June, 2014 in Mortgages

reverse mortgage canada chipFirst all, CHIP stands for Canadian Home Income Plan.

Many people own houses but do not have cash to spend, finance their lifestyles or aquire other possessions they would like to own. This have been a problem for many especially the retired senior citizens who are no longer on pay slips.

Canadian Home Income Plan is the company that takes away your miserly. This company is the best and most active of the few that offer this kind of service in Canada.

You have a home, but you don’t have cash. Basically, you are house rich but cash poor. Reverse mortgage is a deal whereby you cash in on a portion or a percentage of the total equity or value of your house, and Canadian Home Income Plan is the company that gives you the best deal. Instead of the conventional mortgage system where you pay company,with reverse mortgage, CHIP pays you. That money is acknowledged as a lien against your house.

What are the advantages of taking up a CHIP reverse mortgage?

There are many benefits of taking a reverse mortgage in Canada. You are not required to present any other collateral apart from your house. This means that the payments only depend on the value of the house as it appreciates and cannot exceed it. You cannot pay more than the value of your house,even if the market goes down. Again,you are not forced to pay anything as long as you live and you don’t sell the house,although you may choose to pay some installments if you wish. With CHIP reverse mortgage, payment is only demanded if you decide to sell your house or when you pass away. Still,you can end up with half or more the equity of the house after payment. The other good thing is that the payments you receive are not taxable,hence off-setting the interest payable on the mortgage.

Do you qualify for a Canadian Home Income Plan reverse mortgage?

With CHIP, you only need to own a house. The amount you receive depends on your age, gender, value of the house,location and your current debts. Older people receive are worth more. For more information visit http://seniorslendingcentre.com/

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