Benefits of Reverse Mortgage Loans
Are you a homeowner looking for a second source of income or cash to enjoy your retirement and pay for living expenses?
Homeowners age 55 or older can take advantage of a reverse mortgage. A reverse mortgage is also known as a Canadian Home Income Plan (CHIP). It is a type of loan from your equity which allows you to get money without having to sell your home.
Here are the 5 benefits of reverse mortgage loans:
1. Tax-free cash
The money you receive from a reverse mortgage is not added to your taxable income. It is tax-free cash so it won’t affect Old Age (OAS) or Guaranteed Income Supplement (GIS) government benefits you may receive.
2. Use the money any way you wish
You can use the money any way you wish such as using the money to repay debts, cover unexpected expenses, and pay for home repairs or improvements. However, you must pay off any outstanding loans or lines of credit that are secured by your home first.
3. No regular monthly mortgage payments
A reverse mortgage is unlike a traditional mortgage. There are no regular mortgage payments required while you or your spouse live in your home. The full amount only becomes due when you and your spouse no longer live in the home.
4. Maintain complete ownership of your home
You maintain complete ownership of your home. So you will never be asked to move, sell, or repay your reverse mortgage. The only thing that is required is that you maintain your property and stay up-to-date with property taxes.
5. Keep all the equity remaining in your home
Did you know 99 out of 100 homeowners have money left over when their reverse mortgage is repaid? In most cases, most homeowners have lots of equity left over when they decide to sell their home.
About Hotline Mortgages
With access to a vast network of over 300 lending institutions – including mortgage investment corporations, private lenders, major banks, credit unions, trusts and other national and regional lenders, I have the tools to build a customized mortgage plan, with the features and options that meet your needs.