For some, a reverse mortgage is often the only solution to financial
TORONTO, May 26, 2014 /CNW/ - The lack of pension reform combined with
seniors living longer than ever is leading to a lack of finances in old
age - a troubling issue that needs to be discussed in families across
That's according to HomEquity Bank experts, provider of the CHIP reverse
"Canadian seniors want to remain in their homes as they age. However,
there are many that could lose their homes because they haven't saved
enough for retirement, some will be forced out due to a lack of
information on options and many of them have the answer in front of
them and don't know it," explained HomEquity Bank VP National Sales,
Meeting with Canadian seniors on a regular basis, Mr. Spencer knows
first-hand the financial issues many face as their retirement
progresses. However, property values have dramatically increased in
many Canadian cities and tapping into the home's equity to subsidize
retirement is going to play a more prominent role, he explained.
According to CARP:
Two-thirds of the workforce - 12 million working Canadians - do not have
workplace pension plans.
Private savings options, such as Registered Retirement Savings Plans
(RRSPs) have not been the answer to retirement security.
Canadian senior Jim Burton, 73, is a Chartered Accountant who seriously
considered selling the family home, where he and his wife lived for 42
years, before deciding on a CHIP reverse mortgage. The catalyst? A real
estate deal fell through due to the death of a partner "which
significantly hurt my retirement plans. This was a big part of my
pension plan process - I was going to be short about a million dollars
without this project."
The CHIP reverse mortgage helped Jim and his wife remain in the family
home and "it was one of the simplest financial transactions I've ever
"We bought our house forever - and we haven't got to forever yet," he
How the CHIP reverse mortgage works:
Visit www.chip.ca or call 1.877.503.2447 to determine the amount of money available,
which is based on the homeowners' age and the location and type of home
as well as the home's current appraised value.
Access money as a one-time lump sum, as monthly payments or both - it's
tailored to individual needs.
Up to 50% of the home's value can be accessed and the money is tax free.
Unlike a traditional loan, no payments are necessary until it's time to
move or sell the home.
"Many baby boomers have not saved enough money for retirement. Without
jobs and income, many face dire financial worries. In many cases, 'sell
the home' is a knee jerk reaction. We want to educate Canadians on
other options, including the reverse mortgage," added Mr. Spencer.
Dispelling a major misconception around CHIP reverse mortgages, he
noted: "After 28 years, and through one of the worst financial crises
we've seen in Canada, in most cases at the time of sale our clients
have an average of 50% of the equity left in their homes."
About HomEquity Bank
HomEquity Bank is a Schedule 1 Canadian Bank offering the CHIP reverse
mortgage solution www.chip.ca. It was founded 28 years ago as an annuity based solution addressing
the financial needs of Canadians who want to access the equity of their
top asset - their home.
SOURCE: HomEquity Bank
For further information:
For further information on the CHIP reverse mortgage solution or to interview Jeff Spencer or Jim Burton, please contact:
Senior Vice President, Marketing and Sales