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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!
Bank of Canada maintains overnight rate target at 1 ¾ per cent
The Bank of Canada today maintained its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 2 per cent and the deposit rate is 1 per cent. Recent data suggest that the slowdown in the global economy has been more pronounced and widespread than the Bank had forecast in its January Monetary Policy Report (MPR). While the sources of moderation appear to be multiple, trade tensions and uncertainty are weighing heavily on confidence and economic activity. It is difficult to disentangle these confidence effects from other adverse factors, but it is clear that global economic prospects would be buoyed by the resolution of trade conflicts. Many central banks have acknowledged the building headwinds to growth, and financial conditions have eased as a result. Meanwhile, progress in US-China trade talks and policy stimulus in China have improved market sentiment and contributed to firmer commodity prices. For Canada, the Bank was projecting a temporary slowdown in late 2018 and early 2019, mainly because of last years drop in oil prices. The Bank had forecast weak exports and investment in the energy sector and a decline in household spending in oil-producing provinces. However, the slowdown in the fourth quarter was sharper and more broadly based. Consumer spending and the housing market were soft, despite strong growth in employment and labour income. Both exports and business investment also fell short of expectations. After growing at a pace of 1.8 per cent in 2018, it now appears that the economy will be weaker in the first half of 2019 than the Bank projected in January. Core inflation measures remain close to 2 per cent. CPI inflation eased to 1.4 per cent in January, largely because of lower gasoline prices. The Bank expects CPI inflation to be slightly below the 2 per cent target through most of 2019, reflecting the impact of temporary factors, including the drag from lower energy prices and a wider output gap. Governing Council judges that the outlook continues to warrant a policy interest rate that is below its neutral range. Given the mixed picture that the data present, it will take time to gauge the persistence of below-potential growth and the implications for the inflation outlook. With increased uncertainty about the timing of future rate increases, Governing Council will be watching closely developments in household spending, oil markets, and global trade policy. Information note The next scheduled date for announcing the overnight rate target is April 24, 2019. The next full update of the Banks outlook for the economy and inflation, including risks to the projection, will be published in the MPR at the same time. https://www.bankofcanada.ca/2019/03/fad-press-release-2019-03-06/
Young people not in employment, education or training: What did they do in the past 12 months?
Young people (aged 15 to 29) who are not in employment, education or training (NEET) are often considered to be more vulnerable than their peers, as they may face a risk of becoming disengaged or socially excluded, and could miss out on gaining skills or experience in the labour market. While Statistics Canada has previously examined the characteristics of the NEET population,1 this is the first study to examine the main activities of NEET15- to 29-year-olds over a 12-month period using Labour Force Survey (LFS) data. 2 Among the activities to be analyzed are going to school, working, caring for children, and volunteering both as a main and secondary activity. Overall, there were 6.9 million young people aged 15 to 29 in Canada in September 2018. Of those, 4.0 million were non-students (57.8%), while 2.9 million were students 3 (42.4%). Both categories (students and non-students) are then divided into the employed and the not employed. The NEET population consists of all non-students who are not employed: in September 2018, 779,000 people were in this category (11.3% of the total population aged 15 to 29). Those aged 25 to 29 comprised the largest proportion (46.8%) of young people who were NEET during the LFS reference week, followed by 20 to 24 (36.9%), and 15 to 19 (16.2%). While NEET individuals were slightly more likely to be female (52.1%) than male (47.9%) overall, those aged 15 to 19 were a few percentage points more likely to be male, and those aged 25 to 29 were similarly likely to be female. Of young people who were NEET in September 2018, 34.5% were unemployed (looking for work and available for work), and 65.5% were inactive (not looking for work). While each of these groups may be at risk of falling behind their peers on work experience, this concern is generally greater for those who are inactive, as they may face challenges entering or re-entering the labour force. Both male and female NEET individuals were more likely to be inactive than unemployed, though the share of women that were out of the labour force (72.2%) was greater than the share of men (58.2%).