CHIP Reverse Mortgage Done Right!
A retired couple on fixed pensions found themselves struggling to make ends meet each month. Both were in good health and wanted to maintain an active lifestyle. They had spent their working years paying off their mortgage and had little saved in their RRSPs.
Now both in their 70s, they’re mortgage free. They love their neighbourhood and want to remain in their family home. Like many people who live in the Greater Vancouver Area, their house has increased in value significantly and is now valued at $850,000.
GLM Mortgage Group was able to access the equity in the couple’s home and free up $300,000 in a reverse mortgage, which can be received as a lump sum payment or as monthly payments. These funds are tax-free and will not affect their CPP (Canada Pension Plan) or OAS (Old Age Security) payments.
The clients are now in a position to increase their day-to-day spending, undertake some home renovations, take a trip or use the funds however they desire. They’re not required to make any payments on the amount as long as they reside in the property for six months of the year.
Their fixed pension income was sufficient for qualification as it demonstrated there were enough funds available to cover the annual property taxes and insurance costs. The clients can now enjoy staying in their home, retaining ownership and continuing to enjoy the increase in property value.
If you would like to explore your options for a CHIP Reverse Mortgage call us now at 604.259.1486.
Value of Home
$850,000.00
LTV
64%
Credit Scores
712 & 745
Total Debit Services Ratios
38%
Amout of Funds Released
$300,000.00 was accessed by using equity in the couple’s home. No payments are required provided the clients live in the home for six months of the year.
Income Documentation
CPP & OAS statement
Deposit of CPP & OAS with current bank statement
Mortgage Solutions
$300,000.00 was accessed by utilizing the equity in the clients home. No payments are required provided the clients live in the home for 6 months out of the year.