The notion that we should be mortgage-free is a focus many of us strive to achieve the moment we dream of homeownership. However, your mortgage isn't what's stopping you from financial freedom, and there's no time like the present to take charge of your finances and ensure you have enough cash flow to live comfortably while also using your money how you see fit.
Some solutions will help you create more wealth with a mortgage. For instance, with a CHIP Reverse Mortgage, you can leverage your home equity cash flow off debts and expenses with less impact. And with the access to equity upfront, the funds are available when you need them most.
Give yourself a fresh start and plan.
Taking advantage of your home equity through a CHIP Reverse Mortgage can free up some money to pay off unsecured high-interest debt on your credit cards, line of credit and loan.
You'll find that taking equity out of your home to pay off debt will also keep more money in your bank account each month – funds that would otherwise be put towards debt payments and interest.
With access to more money, you'll not only be better able to manage current debt, but you can also plan to complete some home renovations or even help your family with their financial needs.
Additionally, as a Canadian 55 years or older, you may be eligible to access up to 55% of your home equity tax-free – and without impacting your CPP or OAS income. A CHIP Reverse Mortgage is a loan secured against the value of your home, and unlike a traditional loan or mortgage, you're not required to make regular mortgage payments. The loan is repaid only when you no longer live in your home.
By paying off your debt now or helping a loved one when they need it most, you can put yourself and your family in a better financial position. Have questions about unlocking some of your home equity through a CHIP Reverse Mortgage? Let's get in touch!