HomeEquity Bank’s CHIP Reverse Mortgage and CHIP Health allow Canadians over 55 to achieve financial freedom and live retirement their way.
It’s well-known that the COVID-19 pandemic has put aging Canadians in peril, as older people have a higher risk of developing serious complications as a result of contracting the novel coronavirus. What is less discussed are the other immediate and long-term impacts that the pandemic is having on older Canadians — including reduced investment income and increased cost of living.
Even before the pandemic, many older Canadians weren’t sufficiently prepared for retirement. A 2018 CIBC poll showed that 32 percent of Canadians on the cusp of retirement had no retirement savings, while 49 percent had saved less than $250,000 — even though the mean amount of personal savings Canadians think they’ll need for retirement is over $750,000.
That being said, 93 percent of Canadians aged 65 and over want to stay in their current home during retirement. Aging in place
safely and comfortably is a top priority for Canadians. After all, the best place to retire is in your own home.
CHIP Health is here to help
Staying in your own home as you age lets you maintain your independence and
stay close to family and friends. It also provides many physical and mental health benefits. The desire to age in place has only been heightened by the pandemic, due to safety concerns.
That’s why HomeEquity Bank launched CHIP Health, a full-service resource centre that explains how you can tap into your property’s equity to make meaningful improvements to your home for the long-term.
Canadians 55 and over who invested in real estate and have likely seen the value of their home climb over the years can rest easy knowing that if they’d like to access the equity benefits of their investment — whether for recent medical expenses, to retrofit their home, to pay for in-home care, or even for leisure purposes — they can now do so without moving out or downsizing. HomeEquity Bank’s CHIP Reverse Mortgage allows Canadian homeowners aged 55 and over to access up to 55 percent of their home’s value and turn it into tax-free cash. This lets homeowners age in place with complete financial security, and without worrying about monthly mortgage payments.
A smart option
Many older Canadians consider downsizing or moving in order to access equity, but retaining a home is more beneficial from a value perspective, since larger homes appreciate at a higher rate. Moving can also have a large emotional impact on seniors, as well as unanticipated costs such as land transfer taxes, commissions, and renovations.
The CHIP Reverse Mortgage from HomeEquity Bank, Canada’s leading provider of reverse mortgages, is a loan secured against the value of a home that lets older Canadians retain ownership of their home — they simply have to maintain their property and pay the taxes and insurance. Repayment of the loan is only required once they choose to move or sell. HomeEquity Bank guarantees that the amount they eventually repay will never exceed the fair market value of the home, and if the home goes up in value, the appreciation is a bonus.