Your clients can now stay in their home and community.
Up to 55% of the equity in the home is available and can be used however the homeowner wishes.
The money accessed through CHIP is tax-free and will not affect CPP or OAS.
CHIP is a reverse mortgage, a loan secured against the value of the home. Unlike a loan or a regular mortgage, with CHIP you are not required to make regular mortgage payments. The loan is repaid only when the homeowners no longer live in the home.
The homeowner is required to keep the property in good condition, up-to-date with property taxes and property insurance. The money received is tax-free and can be used however the homeowner wishes.