Numerous myths surround reverse mortgages, largely due to the lenient oversight of the reverse mortgage sector in the United States. However, reverse mortgages operate under strict regulations in Canada, differing significantly from those in the U.S.
HomeEquity Bank, a pioneer in offering reverse mortgages in Canada, operates as a Schedule 1 federally regulated Canadian Chartered Bank. For more than three decades, HomeEquity Bank has assisted Canadian homeowners aged 55 and older to comfortably remain in their beloved homes.
It’s crucial to distinguish between reality and myth when considering a CHIP Reverse Mortgage. Ensuring you have comprehensive and accurate information is key to determining if this financial option suits your needs.
| Myths | Facts |
|---|---|
| Myth: The bank owns your home. | Fact: With Canadian Reverse Mortgages, including CHIP, you maintain ownership and title of your home. |
| Myth: The bank can force you to see or foreclose at any time. | Fact: As long as you have met your mortgage obligation, such as continuing to live in your home and keeping your property taxes and homeowners insurance up to date, the loan won’t be called. |
| Myth: You can owe more money than what the house is worth. | Fact: With CHIP, there is a No Negative Equity Guarantee*, where you will never owe more than the fair market value of your home. |
| Myth: A reverse mortgage is a product of last resort. | Fact: CHIP is a safe and secure financial solution to access tax-free cash. CHIP allows you to pay down debt supplement your retirement income, and make upgrades to your home to age in place while avoiding drawing down on investments. |
| Fact: You cannot get a reverse mortgage if you have an existing mortgage. | Fact: With Canadian Reverse Mortgages, including CHIP, your reverse mortgage funds are used to pay off your existing mortgage and the remaining amount is yours to sped however you wish ** |
** Funds will be disbursed to pay off existing loans first.