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21 Nov

5 Ways to Use a CHIP Reverse Mortgage

Mortgage Tips

Posted by: Tracy Luciani Price

CHIP reverse mortgages are now becoming a more mainstream financial solution for Canadians 55+ ; they are being used by thousands of Canadians for a variety of reasons. Homeowners 55+ are unlocking their home equity for tax-free funds that don’t have to be re-paid until they decide to sell their home. Consider your own financial needs. Do any of these 5 common scenarios sound familiar?

1. You have missed a payment/made a late payment.

Credit card, car and mortgage payments can become a vicious cycle; you make monthly interest payments and elongate the process of chipping away at that debt.  Alleviate the stress of debt by consolidating smaller loans with a reverse mortgage at a much lower interest rate. By consolidating your debt with a reverse mortgage, you can eliminate the stress of having to make monthly payments towards your loan and in turn, free up your monthly income. Better yet, a reverse mortgage doesn’t require any regular payments until you sell or no longer live in your home.

2. You have asked to skip a payment or are dipping into your investments.  

If your debt has led to missing payments or touching your RRIF or retirement accounts, consider using a reverse mortgage to unlock up to 55% of your home equity. This way you can pay off debts while your investments keep working for you.

3. You want to start crossing things off your bucket list yet can’t afford to.

Maybe your dream is to purchase a second home, take a vacation, or even just dine out or attend the theatre regularly. A reverse mortgage can improve your retirement lifestyle by supplementing your monthly income without affecting your OAS and pension.

4. You want to financially assist your aging parents/kids/grandkids.

As the sandwich generation, you’re caring both for kids and aging parents. That can place huge financial stress on a household. Your parents can use a reverse mortgage on their home to enjoy financial independence instead of relying on you. At the same time, since a reverse mortgage can be used for whatever, you like, you can “gift” family members and witness their enjoyment while you are still here.

5. You are facing unexpected expenses.

Maybe it’s a leaky roof or a flood in your basement. Or you might have to renovate your home for changing healthcare needs. A reverse mortgage gives you quick access funds to pay for unplanned expenses without worrying about making any payments until you move or decide to sell your home.

If any of the examples above resonate with you, contact your DLC mortgage expert to find out how the CHIP Reverse Mortgage by Home Equity Bank can be a viable option to help you live your best retirement!

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