Reverse Mortgage Canada - Free Guide Explains Everything
Learn everything there is to know about a reverse mortgage in Canada.
A licensed mortgage agent reveals the inside Canadian reverse mortgage tricks that you need to learn before making your decision - the information in this guide has both the pros and cons of a reverse mortgage in Canada.
Reverse Mortgage Canada - The Ultimate Guide
This free download will outline all the factors you need to know about a reverse mortgage in Canada - so you can make an informed decision about these Canadian mortgages.
The Top 3 Things You Will Learn:
All the pros and cons of this choice.
A comparison to other Canadian mortgage options..
The factors you need to be aware of before making a decision.
Some Canadians who have benefited from this product:
We wanted to stay in our house before we love it. If it wasn't for CHIP, I could never have stayed in my home.
- Ben And Inge, Ontario
They made a lifestyle difference and opened many doors.
They gave us the freedom to use that money in whatever way we wanted... we made repairs and went on vacation.
- Donald And Emily
What Is A Reverse Mortgage? Check Out Our Video...
Reverse Mortgage Canada - Commonly Asked Questions:
What Is A Reverse Mortgage In Canada?
A reverse mortgage in Canada is a specialist mortgage product only available to homeowners older than 55. It is made for seniors, with the goal of supplementing your retirement income both for people in or entering their retirement years.
The reason why it is a different kind of mortgage that requires further understanding, it that the purpose is to allow you to unlock equity from your home without having to make any repayments towards the mortgage. In addition to this it is designed to allow you to live in your home for the rest of your life - without paying a penny.
Like a normal mortgage or Home Equity Line Of Credit, an interest rate is charged on the balance but you don't actually pay it - it is simply added to the balance owed. The lender gets their money back when the house is either sold or re-mortgaged by your estate, after the owners have passed away.
You can get up to 55% of the value of your home under a reverse mortgage in Canada - previously known as the CHIP plan. However, the important words here are up to. In reality, the younger you are (closer to the age of 55), the lower the amount you qualify for. Most people around the age of 55 qualify for around 30%. This is deliberate and conservative - firstly, so you don't eat up your home equity over time and, secondly, because this type of mortgage was created for Candians entering their retirement years.
Remember, that the most important goal of this type of loan is to allow you to live in your house for life, whilst supplmenting your retirement income.
What Is The CHIP Program?
CHIP refers to the 'Canadian Home Income Plan'. CHIP is essentially what these mortgages or plan used to be called. It is offered by the same bank - HomEquity Bank - who work exclusively with the senior population. The name was changed because it was felt that 'mortgage' more accurately reflected the type of product than 'plan'.
What Are The Differences To The U.S.A?
Firstly, it should be noted that this guide is called the 'Reverse Mortgage Canada' guide since it only applies to Canada. You should know that in the U.S.A there were a lot more problems with these mortgages - because they are completely mortgages in the U.S. compared to Canada – I would say that they are considered much more risky and less beneficial for you than the Canadian version. Therefore this guide only covers the Canadian product as it is the one I know inside out.
What About My Province?
This solution is offered all across Canada - so your Province will be covered by the info in the guide. There is no difference in the product at all - all across Canada from Province to Province - it is exactly the same.
However, with that said, it should be noted that the Yukon is the only place where reverse mortgages in Canada are not available.
What Are The Current Rates?
As rates are constantly changing and being updating, it is best to consult with us. In addition to this, with this product in particular you must think about more than just the rate. For example, one thing that you absolutely must consider is home equity growth - this is what can help you keep (or even increase) your home equity over time.
Who Are You And Why Did You Write This Reverse Mortgage Canada Guide?
I am a licensed mortgage agent, Chartered Accountant and Certified Reverse Mortgage Specialist. I wrote this guide because of the ridiculous amount of confusing and incorrect information out there regarding reverse mortgages in Canada. Having been a broker on a number of deals, I felt like I could offer good advice to seniors considering this mortgage option.
I am also part of Dominion Lending Centres - the #1 mortgage company in Canada for every kind of mortgage.
That's why we created this guide - so Canadians could find out the real pros and cons you need to know.
One example of this, is that people genuinely believe they will 'lose' their home. This is literally impossible. It is written into the legal contract. In fact, the whole point of a reverse mortgage in Canada is to help people stay in their home for life!
It it hearing complete falsehoods like this that led to me putting the work in to create and write this guide.
How Often Is This Updated?
This is something that I have been working on for a long time and I update it regularly. We have also used our contacts with lenders and experience as mortgage agents to ensure that all the information contained inside is accurate. I genuinely believe that there is no other guide to this product as comprehensive as this.
The guide is fresh – we update it regularly – and our goal has been to include absolutely everything there is to know about this product.
If you feel like we have missed something, then let us know - we are always open to adding to and improving the guide.
I Already Know About Reverse Mortgages In Canada - But Need Other Advice. What Should I Do?
If you already know quite a bit and are pretty sure that this might be a good option for you, we have you covered too.
Simply take my free 90 second assessment and you will get your own dedicated professional to look at your details and advise you if this is the right financial option for you. As the name suggests, it only takes 90 seconds of your time. No need to work the calculator yourself - let us do the hard work for you!
You can check out our sister site - GTA Mortgage Pros.
How Much Do Your Services Cost Me?
Just so you have it in black and white: my services, this guide, the free online assessment and any advice at all that I give you is 100%, completely, totally free.
How Is This Sent To Me?
The guide will simply be emailed to you - it is a PDF file (opens with Adobe or any PDF or eBook reader). I will email it to you immediately. I will also continue to send you other free tips, tricks and advice to help you along the way – you can unsubscribe any time if the guide is more than enough for your needs.
Who Offers A Reverse Mortgage In Canada?
The 'big 5 banks' - RBC, BMO, CIBC, Scotiabank and TD do not offer this product in Canada. The reason is that this is a very specialist product that requires years of investing and input before the lender sees any returns.
At present, the only regulated bank to offer this type of mortgage loan is HomeEquity Bank.
If you have any further questions then please let me know! Make sure and check out the free guide first though...
- Michael Sneddon CPA, CA