CHIP Reverse Mortgage provided by HomEquity Bank
In order to be approved for a reverse mortgage, there is specific criteria REQUIRED. that the underwriting team reviews. Outlined below are several key areas to be considered by the lender before making any approval.
Do you meet the minimum requirements?
- Homeowners must both be 55 or older, own the home, and live in a province.
- The appraised home value must be at least $150,000.
- Secured debt is less than what the amount a client is approved for.
What is the property type?
- HomeEquity Bank will provide a reverse mortgage on most home types (detached, semi-detached, townhomes, condos, mobile homes).
- Exceptions include: the three territories (Nunavut, Northwest Territories, and Yukon), or on native reserves.
How will the funds be used?
Did you know that reverse mortgage funds can be used in many ways? Such as:
- Travel, medical expenses, and an early inheritance to children.
- More commonly, many homeowners use the funds to purchase property.
How much can they be approved for?
The age of the clients is one of the major determining factors when calculating the percentage. In general, the older your clients are, the more they can get approved for.
Protecting the remaining equity in your home is important to HomeEquity Bank and by utilizing conservative lending rules clients generally get to retain more of the equity in their home. To get a tailored view of how much your clients can get, use our online calculator at chipadvisor.ca/calculator.
Features of a CHIP Reverse Mortgage
- Homeowners age 55 and older
- No payments are ever required
- No Income qualifications
- No Credit requirements
- Qualify for up to 50% of the value of the home
- Money can be received as a lump sum, or over time or combination
- Owner maintains title
- They can sell or move at anytime
- Receive the money tax free
If you have any questions or would just like to discuss the Reverse Mortgage feel free to call me at 250-861-8758.
This product is very mis-understood by a lot of people so for unbiased information it is best to talk to a Proferssional.
Check back periodically for tips and advise:
1. Approvals, Credit and Income....What do we look at?
* Our approvals are based primarily on age, number of applicants, and then property type/location/value.
* Maximum approval is 55% of the value of the home, but eligible amount varies based on the above. In general, the older the client, the more they are approved for. The younger the client, the less they are approved for. Also, detached homes receive more than strata properties