A reverse mortgage is all about creating extra income after you retire. Just make sure the type of loan you choose matches your income needs. In Canada, you can get a reverse mortgage through two different programs:
- The Canadian Home Income Plan (CHIP) offers its reverse mortgage plan across Canada. It is available through major banks, credit unions, and mortgage brokers, and also directly from CHIP. To qualify, you must be 60 years of age and over.
- The Home Fund Line of Credit Reverse Mortgage is offered by Cataract Savings and Credit Union in Niagara Falls, Ontario. This is a line of credit with a fixed term, and requires an annual maintenance fee. You don't have to be age 60 to qualify.
These plans may give you one or more of these options to create income:
• Borrow a lump sum and invest it for income
• Buy an annuity to get a regular amount of cash each month
• Borrow smaller sums whenever you need cash.
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