How to keep a vacation property within the family utilizing the CHIP Reverse Mortgage

For many people, a cottage is a place of tranquility and escape from the fast-paced city life. The warmth and coziness of cottages also create the perfect atmosphere for socializing and making memories with loved ones.

Unfortunately, cottages are also getting more expensive to maintain, renovate, and pay property taxes. Those living off their retirement income may own the cottage, but many face cash-flow issues as interest rates rise. Families need help finding the money to do necessary upgrades and preserve the vacation property for future generations to enjoy.

However, using the equity built up in your client’s primary residence can be a handy way to keep a beloved vacation property in the family. The CHIP Reverse Mortgage can give your client(s) access to up to 55% of their home equity in tax-free cash and use these proceeds to keep their family cottage.

Meet Mary and John Smith

Mary and John are in their late 70s. Their principal residence is in Scarborough, Ontario (an Eastern suburb of Toronto), but they have a beautiful cottage in the Kawartha Lakes region north of the city. Like many Canadians on a fixed income, with high interest rates and rising cost of living, they are experiencing an income shortfall. A friend recommended selling their cottage to alleviate their financial strain and to free up some cash. But for Mary and John, the cottage is very important as it serves as the gathering place for their family. The memories created there, from shared family meals and board games to strolls outdoors, are irreplaceable to them.

After consulting with their realtor, Mary and John were recommended to explore the CHIP Reverse Mortgage by HomeEquity Bank.

Despite the initial evaluation of their principal residence in Scarborough falling short of their expectations, HomeEquity Bank facilitated a blanket mortgage (inter-alia) on both properties, granting them enough money to pay out the cottage mortgage that required high payments. The CHIP Reverse Mortgage enabled Mary and John to keep their beloved cottage, allowing them to continue creating happy memories with their family for many years to come.

The CHIP Reverse Mortgage Solution

HomeEquity Bank is Canada’s only reverse mortgage provider to offer blanket mortgages (inter-alia).

The unique solution of the CHIP Reverse Mortgage allows Canadian homeowners aged 55 and above to unlock up to 55% of their home’s value, converting it into tax-free cash without the need to relocate or sell their home.

Since the money your clients receive from the CHIP Reverse Mortgage is a loan, it is not added to their taxable incomes. Moreover, with the CHIP Reverse Mortgage, they don’t have to worry about making monthly mortgage payments, freeing up extra funds for maintaining and preserving their cherished properties, like cottages.

Source CMP
By HomeEquity Bank