As we age, maintaining independence and staying in the home we love can be a challenge. We are faced with reduced mobility and the need for costly home modifications and personal care services. However, with the CHIP Reverse Mortgage by HomeEquity Bank, aging in place becomes more feasible and attainable. Here are three ways in which this unique financial solution can support you:

1. Enhance your home for accessibility and enjoyment.

The CHIP Reverse Mortgage enables you to make essential home improvements that improve accessibility, safety, and overall livability. For example, you can adjust electrical switches and outlets to a more comfortable height, eliminating the need for reaching overhead. You can also facilitate single-level living by relocating the laundry room from the basement to the main floor.

2. Afford the convenience of at-home care.

With funds from the CHIP Reverse Mortgage, you can access financial resources to help with various at-home care needs. For example, hiring a cleaning crew to maintain your house regularly or securing 24/7 in-home caregivers. As a result, the funds provide the means to ensure you receive the necessary assistance and support.

3. Support for transitioning into assisted living or long-term care.

If your spouse or a loved one needs to move into assisted living or long-term care, the CHIP Reverse Mortgage can alleviate the financial strain of the transition. The funds can be used to pay for accommodation and meals, known as co-payment fees, ensuring that your loved one receives the care they need.

Ease financial burdens with the CHIP Reverse Mortgage

In short, the CHIP Reverse Mortgage allows Canadians aged 55 + to unlock up to 55% of their home’s equity as tax-free cash. This enables you to revitalize your living space, afford at-home care services, or support your spouse’s transition to assisted living or long-term care. What’s more, there are no required monthly mortgage payments until you decide to move or sell your home.

Contact Nicole Perri today to discover how the CHIP Reverse Mortgage can empower your journey of aging in place.

Your mortgage amortization period is the number of years it will take you to pay off your mortgage. Firstly, it will affect how quickly you become mortgage-free. Secondly, it will affect how much interest you pay over the lifetime of your mortgage.  A longer lifetime equals more interest, whereas a shorter lifetime equals less interest but also bigger payments.

Let’s start by looking at the mortgage industry benchmark amortization period. The majority of lenders typically use a 25-year period when it comes to discussing mortgage products. It is also typically the basis for standard mortgage calculators.

While this is the standard, it is not the only option when it comes to your mortgage amortization. In fact, mortgage amortizations can be as short as 5-years and as long as 35-years!

Shorter Amortization Periods

Opting for a shorter amortization period will result in paying less interest overall during the life of your mortgage. Choosing this amortization schedule means you will also become mortgage-free faster and have access to your home equity sooner! However, if you choose to pay off your mortgage over a shorter time-frame, you will have higher payments per month. If your income is irregular, this is your first home, or you are at the maximum end of your monthly budget, you may not benefit from a shorter amortization. This will lead to having more cash flow tied up in your monthly mortgage payments.

Longer Amortization Periods

When it comes to choosing a longer amortization period, there are definitely still advantages. The first is that you have smaller monthly mortgage payments, which can make home ownership less daunting for first-time buyers. It can also free up additional monthly cash flow for other bills or endeavors. A longer amortization also has its advantages when it comes to buying a home. It can often get you into your dream home sooner, due to utilizing standard mortgage payments versus accelerated. In some cases, with your payments happening over a larger period of time, you may also qualify for a slightly higher value mortgage than a shorter amortization depending on your situation.

How I Can Help

Nicole Perri will be able to assist choosing the amortization that best suits your needs and ensure you have adequate cash flow. However, it is important to mention that you are not stuck with the amortization schedule you choose at the time you get your mortgage. You are able to shorten or lengthen your amortization, as well as consider making extra payments on your mortgage (if you set up pre-payment options), at a later date.

Ideally, you are re-evaluating your mortgage at renewal time every 3, 5 or 10 years depending on your mortgage product. During renewal is a great time to review your amortization and payment schedules. You can make changes if they are no longer working for you.

If you have any questions or are looking to get started on purchasing a home, reach out to Nicole Perri!

When it comes to homeownership, many of us dream of the day we will be mortgage-free. While most mortgages operate on a 25-year amortization schedule, there are some ways you can pay off your mortgage quicker!

1. Review Your Payment Schedule

Taking a look at your payment schedule can be an easy way to start paying down your mortgage faster. You can move to an accelerated bi-weekly payment. While this will lead to slightly higher monthly payments, the overall result is approximately one extra payment on your mortgage per calendar year. This can reduce the total amortization by multiple years, which is an effective way to whittle down your amortization faster.

2. Increase Your Mortgage Payments*

This is another fairly simple change you can execute today to start having more of an impact on your mortgage. Most lenders offer some sort of pre-payment privilege that allows you to increase your payment amount without penalty. This payment increase allowance can range from a 10% to 20% payment increase from the original payment amount. If you earned a raise at work, or have come into some money, consider putting those funds right into your mortgage to help reduce your mortgage balance without you feeling like you are having to change your spending habits.

3. Make Extra Payments*

For those of you who have pre-payment privileges on your mortgage, this is a great option for paying it down faster. The extra payment option allows you to do an annual lump-sum payment of 15-20% of the original loan amount to help clear out some of your loan! Some mortgages will allow you to increase your payment by this pre-payment privilege percentage amount as well. This is another great way to utilize any extra money you may have earned, such as from a bonus at work or inheritance.

4. Negotiate a Better Rate

Depending on whether you have a variable or a fixed mortgage, you may want to consider looking into getting a better rate to reduce your overall mortgage payments and money to interest. This is ideally done when your mortgage term is up for renewal and with rates starting to come back down, it could be a great opportunity to adjust your mortgage and save! This may be done with your existing lender OR moving to a new lender who is offering a lower rate (known as a switch and transfer).

5. Refinance to a Shorter Amortization Period

Lastly, consider the term of your mortgage. If your mortgage is up for renewal, this is a great time to look at refinancing to a shorter amortization. While this will lead to higher monthly payments, you will be paying less interest over the life of the loan. Knowing what you can afford and how quickly you want to be mortgage-free can help determine the new amortization schedule.

*These options are only available for some mortgage products, check your mortgage package. Also, reach out to me to ensure these options are available to you and avoid any potential penalties.

If you’re looking to pay your mortgage off quicker, don’t hesitate to reach out to Nicole Perri today! She can help review the above options and assist in choosing the most effective course of action for your situation.