Reverse Mortgage in Canada

May 23rd, 2007

Reverse mortgage in Canada is as popular as reverse mortgage in the US. Reverse mortgage in Canada has been around for over 20 years and is very similar to the US version of reverse mortgage. In Canada, reverse mortgage is even taken more seriously than in the US because, in most cases, the principal residence is a Canadian family’s biggest asset. According to Statistics Canada, more than 37% of a Canadian family’s total asset is the principal residence on average. Therefore, when wanting to generate some income, the Canadians look into tapping into equity of their homes, through reverse mortgage.

Benefits of reverse mortgage in Canada

Reverse mortgage in Canada has many advantages. Some of the advantages of reverse mortgage in Canada are outlined below.

Firstly, reverse mortgage in Canada can supplement your monthly retirement income, just as a reverse mortgage would in the US.

Secondly, payments from a reverse mortgage in Canada can be used to pay off some debts and

thirdly, income from reverse mortgage in Canada can delay your retirement withdrawals, thus avoid taxable income for awhile.

Where can I get more information on reverse mortgage in Canada?

In Canada, information on reverse mortgage can be obtained by contacting the Canadian Home Income Plan (CHIP). The Canadian Home Income Plan (CHIP) is Canada ’s first and only national provider of reverse mortgage in Canada for seniors. You can contact the Canadian Home Income Plan or CHIP by calling 1-800-563-2447.

Personal Finance Guide