Is the CHIP Reverse Mortgage right for you?

Jamie Ushko • Aug 01, 2023

As a Canadian aged 55 or older, you've reached a significant milestone in your life—retirement. This phase comes with a variety of financial options to consider, but not all of them are the right fit for everyone. It's crucial to take some time for reflection and choose a financial solution that aligns with your specific retirement needs and aspirations. One versatile option worth exploring is the CHIP Reverse Mortgage by HomeEquity Bank, which can help address various financial challenges faced by Canadians in their golden years.


Is the CHIP Reverse Mortgage Right for You?

The CHIP Reverse Mortgage is a flexible financial tool that can be a game-changer for Canadians aged 55 and older.

Here are some scenarios where this financial solution might be a perfect fit:


1. Consolidating Debt and Eliminating Payments:

  • Are you retiring with debt?
  • Do you want to consolidate your debts and avoid monthly payments?

If you find yourself nodding in agreement to these questions, the CHIP Reverse Mortgage can provide a welcome relief. It allows you to use the equity in your home to pay off outstanding bills and eliminate the financial stress of monthly debt payments.


2. Dealing with Unplanned Expenses:

  • Are unexpected expenses cropping up, like home repairs, mobility-related renovations, or in-home care costs?

Life often throws unexpected financial curveballs. If you're facing short-term financial strains due to unplanned expenses, the CHIP Reverse Mortgage can offer quick access to cash to address these urgent needs.


3. Embracing Your Retirement Dreams:

  • Do you want to make the most of your retirement by traveling, pursuing hobbies, or enhancing your lifestyle?
  • Are you finding that your current income doesn't match your retirement aspirations?

For those who want to live life to the fullest during retirement but need additional funds to turn their dreams into reality, the CHIP Reverse Mortgage provides the cash flow necessary to enjoy your golden years to the fullest.


4. Maintaining Your Pre-Retirement Lifestyle:

  • Do you want to maintain the same standard of living you enjoyed before retirement?
  • Are you concerned that a decrease in income may force you to adjust your lifestyle?



Many retirees face the prospect of scaling back their lifestyles due to a reduction in income. If you wish to maintain your preretirement lifestyle but require extra financial support, the CHIP Reverse Mortgage can help bridge that gap.


The Power of the CHIP Reverse Mortgage

If you fall into any of the groups mentioned above, it's time to explore the benefits of the CHIP Reverse Mortgage. This financial solution allows Canadian homeowners aged 55+ to access up to 55% of their home's value in tax-free cash. It offers flexible withdrawal options, including a lump sum, staged withdrawals, regular intervals over a set period, or a combination of these choices.


One of the standout features of the CHIP Reverse Mortgage is that it doesn't require monthly mortgage payments. You can continue to own and live in your home without the burden of monthly loan payments. Repayment only becomes necessary when you decide to move, sell your home, or no longer reside in it.


Moreover, HomeEquity Bank provides a No Negative Equity Guarantee. This guarantee ensures that you will never owe more than the value of your home, provided you maintain the property in good condition, pay property taxes and insurance, and keep the property out of default.


Is the CHIP Reverse Mortgage Right for You?

If you're intrigued by the possibilities of the CHIP Reverse Mortgage and believe it could be the financial solution you've been searching for in retirement, it's time to explore further. Contact me to discuss your specific financial situation and explore how the CHIP Reverse Mortgage can empower you to enjoy a financially secure and fulfilling retirement. Your financial freedom is within reach!

Jamie Ushko

Mortgage Broker

By Jamie Ushko 15 May, 2024
Buying a property might actually be easier than you think. So, if you have NO desire AT ALL to qualify for a mortgage, here are some great steps you can take to ensure you don’t accidentally buy a property. Fair warning, this article might get a little cheeky. Quit your job. First things first, ditch that job. One of the best ways to make sure you won’t qualify for a mortgage is to be unemployed. Yep, most mortgage lenders aren’t in the practice of lending money to unemployed people! If you already have a preapproval in place and don’t want to go through with financing, no problems. Unexpectedly quit your job mid-application. Because, even if you’re making a lateral move or taking a better job, any change in employment status can negatively impact your approval. Spend All Your Savings. To get a mortgage, you’ll have to bring some money to the table. In Canada, the minimum downpayment required is 5% of the purchase price. Now, if the goal is not to get a mortgage, spending all your money and having absolutely nothing in your account is a surefire way to ensure you won’t qualify for a mortgage. So, if you’ve been looking for a reason to go out and buy a new vehicle, consider this your permission. Collect as Much Debt as Possible. After quitting your job and spending all your savings, you should definitely go out and incur as much debt as possible! The higher the payments, the better. You see, one of the main qualifiers on a mortgage is called your debt-service ratio. This takes into count the amount of money you make compared to the amount of money you owe. So the more debt you have, the less money you’ll have leftover to finance a home. Stop Making Your Debt Payments So let’s say you can’t shake your job, you still have a good amount of money in the bank, and you’ve run out of ways to spend money you don’t have. Don’t panic; you can still absolutely wreck your chances of qualifying for a mortgage! Just don’t pay any of your bills on time or stop making your payments altogether. Why would any lender want to lend you money when you have a track record of not paying back any of the money you’ve already borrowed? Provide Ugly Supporting Documentation. Now, if all else fails, the last chance you have to scuttle your chances of getting a mortgage is to provide the lender with really ugly documents. To support your mortgage application, lenders must complete their due diligence. Here are three ways to make sure the lender won’t be able to verify anything. Firstly, and probably the most straightforward, make sure your name doesn’t appear anywhere on any of your statements. This way, the lender can’t be sure the documents are actually yours or not. Secondly, when providing bank statements to prove downpayment funds, make sure there are multiple cash deposits over $1000 without explaining where the money came from. This will look like money laundering and will throw up all kinds of red flags. And lastly, consider blacking out all your “personal information.” Just use a black Sharpie and make your paperwork look like classified FBI documents. Follow-Through So there you have it, to avoid an accidental home purchase, you should quit your job, spend all your money, borrow as much money as possible, stop making your payments, and make sure the lender can’t prove anything! This will ensure no one will lend you money to buy a property! Now, on the off chance that you’d actually like to qualify for a mortgage, you’ve come to the right place. The suggestion would be to actually keep your job, save for a downpayment, limit the amount of debt you carry, make your payments on time, and provide clear documentation to support your mortgage application! If you'd like to make sure you're on the right track, connect anytime. It would be a pleasure to walk through the mortgage process with you.
By Jamie Ushko 08 May, 2024
When arranging mortgage financing, your mortgage lender will register your mortgage in one of two ways. Either with a standard charge mortgage or a collateral charge mortgage. Let’s look at the differences between the two. Standard charge mortgage This is your good old-fashioned mortgage. A standard charge mortgage is the mortgage you most likely think about when you consider mortgage financing. Here, the amount you borrow from the lender is the amount that is registered against the title to protect the lender if you default on your mortgage. When your mortgage term is up, you can either renew your existing mortgage or, if it makes more financial sense, you can switch your mortgage to another lender. As long as you aren’t changing any of the fine print, the new lender will usually cover the cost of the switch. A standard charge mortgage has set terms and is non-advanceable. This means that if you need to borrow more money, you'll need to reapply and requalify for a new mortgage. So there will be costs associated with breaking your existing mortgage and costs to register a new one. Collateral charge mortgage A collateral charge mortgage is a mortgage that can have multiple parts, usually with a re-advanceable component. It can include many different financing options like a personal loan or line of credit. Your mortgage is registered against the title in a way that should you need to borrow more money down the line; you can do so fairly easily. A home equity line of credit is a good example of a collateral charge mortgage. Unlike a standard charge mortgage, here, your lender will register a higher amount than what you actually borrow. This could be for the property's full value, or some lenders will go up to 125% of your property's value. In the future, if the value of your property appreciates, with a collateral charge mortgage, you don't have to rewrite your existing mortgage to borrow more money (assuming you qualify). This will save you from any costs associated with breaking your existing mortgage and registering a new one. However, if you’re looking to switch your mortgage to another lender at the end of your term, you might be forced to discharge your mortgage and incur legal fees. Also, by registering your mortgage with a collateral charge, you potentially limit your ability to secure a second mortgage. So what’s a better option for you? Well, there are benefits and drawbacks to both. Finding the best option for you really depends on your financial situation and what you believe gives you the most flexibility. This is probably a question better handled in a conversation rather than in an article. With that said, undoubtedly, the best option is to work with an independent mortgage professional. It’s our job to understand the intricacies of mortgage financing, listen to and assess your needs, and recommend the best mortgage to meet your needs. As we work with many lenders, we can provide you with options. Don’t get stuck dealing with a single institution that may only offer you a collateral charge mortgage when what you need is a standard charge mortgage. So if you’d like to have a conversation about mortgage financing, please get in touch. It would be a pleasure to work with you and answer any questions you might have.
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