Why is NOW a great time for a Reverse Mortgage?.

According to a recent study by Angus Reid, Seven-in-Ten Canadians say money is a source of stress¹.You may feel the pressure of the current economic circumstances, such as rising inflation, which makes it more challenging to maintain your standard of living. More Canadians are becoming stressed about their financial situation, from increasing expenses such as out-of-pocket health care and home retrofitting costs to higher grocery and electricity bills.

At times like this, you might be looking for advice and guidance on how you can navigate the uncertain economic climate to maintain your standard of living. The good news is that if you are a Canadian 55+, the CHIP Reverse Mortgage by HomeEquity Bank is a solution for today.

Here are 5 benefits of the CHIP Reverse Mortgage:

1. A Reverse Mortgage allows you to leverage your most valuable asset- your home. You could access up to 55% of the equity in your home, tax-free, with no required monthly mortgage payments, and no negative impact on your cash flow.
   
2. A survey found that 92% of Canadians 45+ are keen on aging in place, but finances are a barrier*. With a Reverse Mortgage, you can stay in the home and community you love. You can release more equity in the future, if you choose not to take the full amount or if the value of your home rises. Additionally, you will still be able to benefit from future home price appreciation.
   
3. With a Reverse Mortgage, there is no restriction on how you spend the money you receive.  You can use a Reverse Mortgage to relieve financial pressure, increase your cashflow, buy the vacation property you always dreamed of, cover health care expenses, finally renovate or make home improvements, and more!
   
4. Because you are tapping into your home equity, the funds are not added to your taxable income, nor do they affect government benefits such as Old Age Security (OAS) and Canada Pension Plan (CPP). Also, unlocking part of your home’s equity allows a larger portion of your registered investments to continue growing on a tax-free basis- potentially providing more assets to leave your heirs.
   
5. A critical safeguard in today’s economic climate is HomeEquity Bank’s No Negative Equity Guarantee, meaning you will never owe more than your home is worth when you decide to move or sell. This feature ensures that if your home depreciates below the mortgage amount owing, HomeEquity Bank will cover the difference**. You can stay in the home you love while you wait for the housing market to recover. As an added protection, HomeEquity Bank’s process includes independent legal advice for your lawyer to review the mortgage contract to ensure you understand all the features of the contract.

Contact your DLC mortgage broker to find out how the CHIP Reverse Mortgage by HomeEquity Bank can be a viable option to help you live your best retirement! 

¹source: Falling Behind: 53% of Canadians say they can’t keep up with the cost of living – Angus Reid Institute

*Survey Methodology: Survey conducted by Ipsos, on behalf of HomeEquity Bank from April 13-16, 2022, polled 1001 Canadians 45+ to assess public opinion on the role and contributions of Personal Support Workers and financial barriers to access.

**As long as you keep your property in good maintenance, pay your property taxes and property insurance and your property is not in default. The guarantee excludes administrative expenses and interest that has accumulated after the due date.