A CHIP Reverse Mortgage in Canada is just like most other mortgages, with a couple of important exceptions: it is only available to seniors aged 55 years or older and there are no monthly repayments required to pay back the mortgage. Because there are no repayments, there are also no credit checks or income/debt requirements.
The borrower's ability to make payments, typically an important concern with most banks, is simply not an issue here. There is a lot of misinformation out there on the internet regarding CHIP reverse mortgage in Canada. When you have a conventional mortgage on your home, you make monthly payments to the bank or lender, and usually owe less than you borrowed at the end of the term.
The borrower's ability to make payments, typically an important concern with most banks, is simply not an issue here. There is a lot of misinformation out there on the internet regarding CHIP reverse mortgage in Canada. When you have a conventional mortgage on your home, you make monthly payments to the bank or lender, and usually owe less than you borrowed at the end of the term.
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Rebecca Awram has been a government-licenced mortgage broker for almost a decade and a half and preceded that with over 20 years of business in software development, investment and real estate experience. When she first started her new career ('new' at the time!) her biggest fans were her parents. Seniors themselves at the time, they networked and promoted her to all their friends.
Rebecca Awram works for you. Her goal is to find the best solution based on your financial needs and the options available, including Lines of Credit, Equity Loans and the Canadian Home Income Plan (also known as a reverse mortgage in Canada.) She is able to shop all of the lenders across the country and negotiate the very best rate so that you don't have to.
Lenders that provide home loans for seniors, or Home Equity Loans, lend mostly based on the appraised value of the home, not the senior's credit score, job history or income. This means that you may not need to 'qualify' like you would for traditional bank financing. When taking out a seniors' home equity loan the borrower will receive the funds in a lump sum.
A Home Equity Line of Credit for seniors (heloc) is a revolving line of credit available to a maximum of 65% of the value of your home. If you already have a first mortgage, a Line Of Credit may be obtained from your existing mortgage provider. Or, a 'heloc' can be obtained in first position by itself.
There is only ONE provider of true reverse mortgages in Canada, the 'CHIP' Canadian Home Income Plan by HomEquity Bank. Some people are uncomfortable with the rate and terms, or do not meet the minimum age requirements for a CHIP reverse mortgage. It is also perfect for those clients that want something similar to a reverse mortgage but do not meet the minimum age requirement of 55.
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