CHIP Reverse Mortgage
CHIP Reverse Mortgage
Wouldnt it be nice if you had the money to do more of the things you want to do? A CHIP Reverse Mortgage could be just what you need. Its the simple and sensible way to unlock the value in your home and turn it into cash to help you enjoy life on your terms. BENEFITS OF A CHIP REVERSE MORTGAGE You receive the money tax-free. It is not added to your taxable income so it doesnt affect Old Age Security (OAS) or Guaranteed Income Supplement (GIS) government benefits you may receive. You can use the money any way you wish. Maybe you want to enjoy your retirement or cover unexpected expenses. Perhaps you want to update your home or help your family without depleting your current savings. The only condition is that any outstanding loans (e.g. existing mortgage or home equity line of credit) secured by your home must be paid out with the proceeds from your CHIP Reverse Mortgage. No regular mortgage payments are required while you or your spouse live in your home. The full amount only becomes due when you and your spouse no longer live in the home You maintain ownership and control of your home. You will never be asked to move or sell to repay your CHIP Reverse Mortgage. All thats required is that you maintain your property and stay up-to-date with property taxes, fire insurance and condominium or maintenance fees while you live there. You keep all the equity remaining in your home. In many years of experience, 99 out of 100 homeowners have money left over when their CHIP Reverse Mortgage is repaid. And on average, the amount left over is 50% of the value of the home when it is sold. FREQUENTLY ASKED QUESTIONS Got questions? Here are frequently asked questions. How does a CHIP Reverse Mortgage work? A CHIP Reverse Mortgage is secured by the equity in your home. Unlike a traditional mortgage in which you make regular payments to someone else, a reverse mortgage pays you. The big advantage with the CHIP Reverse Mortgage is that you do not have to make any regular mortgage payments for as long as you or your spouse lives in your home. Thats what has made reverse mortgages such a popular solution in Canada, the U.K., the U.S., Australia and other countries. Who is it for? The CHIP Reverse Mortgage is designed exclusively for homeowners age 55 and older. This age qualification applies to both you and your spouse. How much can I get and how is it calculated? You can receive up to 55% of the value of your home. The specific amount is based on your age and that of your spouse, the location and type of home you have, and your homes current appraised value. You can contact me and I can quickly give you an estimate of how much you may be approved for. How do I receive the money? You can choose how you want to receive the money. The CHIP Reverse Mortgage gives you the option of receiving all the money youre eligible for in one lump sum advance, or you can take some now and more later, or you can receive planned advances over a set period of time. Planned advances are available on the Income Advantage product. Will the homeowner owe more than the house is worth? The homeowner keeps all the equity remaining in the home. In our many years of experience, over 99% of homeowners have money left over when their loan is repaid. The equity remaining depends on the amount borrowed, the value of the home, and the amount of time thats passed since the reverse mortgage was taken out. Will the bank own the home? No. The homeowner retains title and maintains ownership of the home. Its required for the homeowner to live in the home, pay taxes on time, have property insurance, and maintain the property in good condition. What if the homeowner has an existing mortgage? Many of our clients use a reverse mortgage to pay off their existing mortgage and debts. Should reverse mortgages only be considered as a loan of last resort? No. Many financial professionals recommend a reverse mortgage to supplement monthly income instead of selling and downsizing, or taking out a conventional mortgage or a line of credit. What fees are associated with a reverse mortgage? There are one time fees to arrange a reverse mortgage such as an appraisal fee, fee for independent legal advice as well as our fee for administration, title insurance, and registration. With the exception of the appraisal fee, these fees are paid for with the funding dollars. What if the homeowner cant afford payments? There are no monthly payments required as long as the homeowner is living in the home. Contact me today if you have any questions or if youd like to see how much you can get!
Canadian Federal Fall Economic Statement 2020
Canadas Federal Finance Minister provided a first multi-year peek at the impact of the pandemic on the Canadian economy and its finances in her Fall Economic Statement 2020. The deficit is set to soar to $381 bn (17.5% of GDP) in FY21an increase of about $40 bn since July estimates. At the same time, the government acknowledges it could be as high as $400 bn under alternative scenarios of extended and/or escalating COVID-19 cases.
The blow to government revenues contributes to a quarter of the shortfall, while COVID-19 spending will add another $275 bn of deficit financing this year. The bulk of increases in pandemic spending had already been announcedbut not costedprior to the update, whereas new announcements reflect about $25 bn. This includes a $17 bn top-up to the wage subsidy program to bring its coverage back up to 75% for the remainder of the fiscal year.
Debt as a share of the economy is expected to swell to 50% this year, peaking close to 53% in 2021 and declining thereafter. But this is only a baseline that does not incorporate a new stimulus package of up to $100 bn promised over the next three years that would see debt soar to around 58% of GDP by 2024 under various scenarios.
The new stimulus package will be designed in the coming months with an intent to jumpstart the recovery. Its withdrawal would not be time-based, rather contingent on closing the output gap, loosely defined in terms of employment metrics. These so-called guardrails will guide fiscal policy until the economy has recovered and the government will then return to a prudent and responsible fiscal path.
Markets are likely to temporarily adjust to the implied bump in expected federal borrowing requirements (although an abundance of scenarios leaves this open to a wide range of interpretations), but this will be digested in an environment where global drivers are largely shaping bond market dynamics.
Almost one-quarter of Canadian seniors are caregivers
While older Canadians may be more likely than their younger counterparts to require help and care in their daily lives, almost one-quarter of Canadian seniors aged 65 years and older are caregivers themselves. And while the roles and responsibilities of these senior caregivers may have changed in the context of the COVID-19 pandemic, the challenges they face could be heightened.
Although the pandemic has affected the lives of all Canadians, seniors have been identified as a population particularly vulnerable to COVID-19. Not only are seniors more at risk of severe illness, they are also more affected by isolation measures. As a result, many senior caregivers who help people living outside of their household may not have been able to provide the same level of care that they usually do. Senior caregivers providing help to their spouse may also have seen their burden of care increase, given the possible lack of other support during the pandemic. For example, older caregivers who are usually supported by their adult children to provide help and care for their spouses, may have had to perform additional activities and provide more hours of care than usual. While the data in the current study were collected prior to the COVID-19 pandemic, the results highlight the many challenges senior caregivers already faced.
A new study, The experiences and needs of older caregivers in Canada, uses data from the 2018 General Social Survey on Caregiving and Care Receiving to provide a profile of senior caregivers in Canada. Senior caregivers are those who have provided help or care to a spouse, another family member, or a friend with a long-term health condition, a physical or mental disability, or problems related to aging.
Senior caregivers are likely to continue to play an important role in the years to come. As the needs for care and help increase with an aging population, smaller families and geographic mobility among Canadians may reduce the supply of potential younger family caregivers. Within this context, many older Canadians may be relied upon to become care providers, even though they may develop health issues of their own, including age-related physical and cognitive declines, chronic illness and some level of disability.