Senior Canadians Live the Lifestyle Even in Tough Times Using Reverse Mortgages
Many senior home-owning Canadians have chosen to supplement their incomes during their retirement periods in these troubling economic times. They have tapped into their home equity by using the equivalent of reverse mortgage in USA. In Canada this is called as CHIP (Canadian Home Income Plan).
The CHIP program allows senior home owning Canadians to get up to 40% of the amount in their home equity, subject to other qualifying factors like age, outstanding mortgage, etc. They can receive the money as one-time lump sum payment or as monthly payments made by the lender. Using the CHIP, Canadian seniors are able to get substantial money as additional cash flow during their retirement times. It creates peace of mind in the seniors in these times of economic hardships.
The money the Canadian senior gets from a CHIP is completely tax-free because it is understood that the seniors are withdrawing only the amount locked up in their own home. The money is considered additional positive income and not considered as retirement income. So the senior continues to receive regular payments if any, from CPP (Canadian Pension Plan) and Old Age Security Plan (OAS).
The money derived from the Canadian Home Income Plan is not needed to be repaid to the lender, until both seniors move out of the home or pass away or plan to sell the home. They can continue to get the money while staying in the same house, for as long as they like without needing to worry about repaying the money that is given by the lender.
The CHIP or Canadian reverse mortgage program helps the seniors get the cash they need to live the lifestyle they want, even during troubling economic hardship times. The fact that, the money from reverse mortgage is completely tax-free is a big plus point, for home owning seniors considering taking out a reverse mortgage to meet their daily expense needs.
There are many reverse mortgage lenders established in the various Canadian provinces. Interested Canadian seniors can find out more about the CHIP reverse mortgage program by consulting with a reverse mortgage adviser.
