What If I Am Under 55?

The Canadian Home Income Plan by HomEquity Bank is a lending product for people over the age of 55. Some people may be looking for a mortgage product that has similar benefits, but is available to those who do not meet the minimum age requirements for a reverse mortgage.

There is another mortgage product that is similar to a reverse mortgage called an equity program. The major difference is that unlike a reverse mortgage where no payments are required, this product only allows no payments as long as the value of the loan remains below 50% of the value of the home. It is structured like a home equity line of credit, and for some people is a nice alternative to a reverse mortgage.

An equity program is a good solution for clients who are looking into a reverse mortgage but do not meet the age requirements. It is also beneficial for people who do not want to make payments, but would like to have the option of doing so if needed.

Some clients are comfortable with a reverse mortgage but are frustrated with the conservative lending limits, depending on your age. An equity program is perfect if you're seeking more than what a reverse mortgage can offer.

Advantages:

  • Regardless of age, you can borrow up to 50% of the value of your home
  • No fees to get started
  • Low income and credit requirements
  • No penalties for early payout
  • Payments are optional, up to 50% loan-to-value

Disadvantages:

  • Payments may eventually be required
  • Loan amount cannot exceed 50% of the property value
  • Monthly fee