Are you among those Canadians who have not save the necessary cash for their retirement? You’re not alone!
If you own your home, learn about the Canadian Home Income Plan, know as CHIP Reverse Mortgage to supplement your income during your retirement years.
According to Statistics Canada, 77% of the net value of home equity owned by seniors or homeowners is never invested and remains tied up.
Learn about how you can make a reverse mortgage improve your lifestyle.
If you don’t have enough funds available for your post-retirement expenses, CHIP can help you to utilize some part of your home equity to access tax-free income.
The funds you receive through CHIP does not levy any tax on your current because you will be using the equity of your home for which you have already paid the required tax from the cash you used to purchase it.
Additionally, the income you receive through CHIP is not an earned income and therefore is never considered taxable in any of the tax calculations in the following years. It also does not restrict you from receiving your other retirement benefits from either Old Age Security (OAS) or Canadian Pension Plan (CPP).
Opt-in for receiving regular payments periodically from CHIP or you can also choose to receive the entire amount against your home equity as a lump sum. You can invest the lump sum amount or save it in your account and withdraw as and when you need it. However, it is advisable to consult a financial advisor to understand which option is suitable for you.
CHIP offers you the best solution in situations when you have fewer savings for your retirement and want to supplement your current cash flow.
Contact us today to find out how we can help you improve your lifestyle!