CHIP

Canadian Home Income Plan

A CHIP Home Income Plan is a loan secured by the equity in your home. Without having to sell your home, you can receive up to 50% of the value of your home. The big difference with CHIP is that you do not have to make any payments - interest or principal - for as long as you or your spouse live in your home. You maintain ownership and control of your home while enjoying all the benefits of having converted some of its value into readily accessible, tax-free cash flow.

The CHIP Home Income Plan has helped thousands of people who are looking for a simple, sensible way to unlock the value in their homes - homes that they're very comfortable in and don't want to have to sell. Some of them have expressed it this way: "CHIP helps me get the money I need to enjoy life on my terms."

A reverse mortgage through the CHIP Home Income Plan is available through most of Canada's chartered banks, many credit unions, mortgage brokers, investment and financial planning firms, or directly from CHIP.

Eligibility

Available to homeowners 55 and older on their principle residence.
Location and type of home must qualify.
No medical, income or credit qualifications.

Amount

Homeowners can access up to 50% of the current appraised value of their home based on the homeowner's age and that of their spouse, and on the location and type of home.
Funds are not taxed as income.
Funds can be received in a lump sum or over time. Most clients take a lump sum.
Any outstanding loans secured by the home must be retired with the CHIP Home Income Plan funds.

Repayment

No regular payments are required.
The full amount only becomes due when the home is sold, or if both homeowners move out.
Clients have the option to repay the principal and interest in full at any time.
Upon repayment, an interest rate differential may apply. A prepayment amount will apply on repayments within the first three years. This may be waived or reduced in the event of death or a move into a long-term care facility or retirement residence.

Ownership Protection

With a CHIP reverse mortgage, title remains in the homeowner's name and they will never be asked to move or sell to repay their Home Income Plan.
The homeowner is responsible for up-to-date payment of property taxes, fire insurance and condominium/maintenance fees, and maintenance of the property.

Estate Protection

In more than 20 years of our experience, over 99% of homeowners have equity remaining upon repayment.
The amount to be repaid is guaranteed not to exceed the fair market value of the home at the time it is sold, protecting the homeowner or the estate.

Interest Rates and Set-up Costs

Clients may choose a fixed rate with a variety of terms, or a variable rate.
Interest is added to the outstanding balance and is compounded semi-annually.
Interest rate discounts are available that significantly lower the cost of borrowing.
Set-up costs include a home appraisal, independent legal advice and legal & closing costs.

Contact us for current rates.