Reversed Mortgage Increased 42% in the 4th Quearter, 2011.

January 2, 2013

The desire by seniors to age in place is driving the demand for reversed mortgage

Home equity loan reversed mortgage for seniorsThe need for an improved cash flow in retirement is leading to record number of reverse mortgages in Canada, according to a HomEquity Bank study.

Reverse mortgage origination was up 42% in the fourth quarter of 2011. On an annual basis, the company originated $239 million in reverse mortgages, a 16% year over year jump.

Over the next 20 to 25 years, the Canadians population over 55 years will reach 10 million. Retirement tools such as reverse mortgage are going to get more popular. Reversed mortgage allows seniors to age in-place in their own homes and provides them an income flow from their homes without selling them.

Reverse mortgages are offered to Canadian homeowners 55 and older and have no income, credit or health qualifications. Unlike traditional loans, borrowers don’t have to service the interest or repay the principal for as long as they own their home and are living in it.

CHIP Home Income Plan

CHIP Home Income Plan provided by HomeEquity Bank, Canada is designed exclusively for homeowners age 55 and older This age qualification applies to both you and your spouse.
You can receive up to 50% 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 home’s current appraised value.

A reverse mortgage is not for everyone. The advice of a financial advisor or mortgage broker who has in-depth knowledge on  reversed mortgage can advise you if it is for you.

Kindly contact me (Elsie Tse) at 604-716-3369 or Email Me 

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