With the financial challenges facing many young Canadians today, from rising house prices to inflation, starting a family and owning a home, can seem out of reach. However, many parents are stepping in to support their children financially. 
The CHIP Reverse Mortgage by HomeEquity Bank, offers a financial solution. It allows Canadians 55+ to tap into the equity in their homes, to help their adult children. Just like Mr Smith, who helped his son fulfill his dream of homeownership, you too can provide the support your family needs.
The Smith Family
Robert, a retired business owner, wanted to help his son, Jonathan, afford a down payment on a home after finishing his medical residency. However, as a widower on a fixed income, conventional financing wasn’t an option. He didn’t want to tap into his investments.
With his home valued at $1,300,000 Robert used the CHIP Reverse Mortgage to access $462,500 in tax-free cash. He gave Jonathan $200,000 as a tax-free, non-repayable loan, for a down payment, allowing him to qualify for a conventional mortgage. Robert used the remaining funds for home renovations, to enhance accessibility and safety.
Benefits of the CHIP Reverse Mortgage
- Unlock up to 55% of your home equity, as tax-free cash
- No regular monthly mortgage payments are required
- No impact on government benefits such as Old Age Security (OAS)
- Investments remain intact
- Retain home ownership
- Increase cash flow
- Flexible usage
If you’d like to learn more about how the CHIP Reverse Mortgage can help you stay in the home you love, while supporting the ones you love, contact us today!
