Making the most of your biggest asset

Rising house values have made many 60-plus homeowners house rich. In fact, Statistics Canada tells us that, on average, the equity they have in their homes makes up 77 per cent of their net worth. That’s a lot of money to have locked up in one asset – especially one that comes with many expenses but doesn’t generate any income.

Even as escalating tax, maintenance and utility bills are putting financial pressure on homeowners, 82 per cent of those 60-plus say they want to stay in their homes. If you count yourself in that group and could also use some additional money to do the things you want to do, there is a solution.

A CHIP Home Income Plan is a simple and sensible way to unlock the value in your home and turn it into cash, without having to sell and move.

Here are 10 things you need to know about CHIP:

1. A CHIP Home Income Plan is a loan secured by the equity in your home.

2. A CHIP Home Income Plan is designed exclusively for homeowners age 60 and older. This age qualification applies to both you and your spouse.

3. You can receive from up to 40% of yr home’s current appraised value. This can range from a minimum of $20,000 up to a maximum of $500,000. The specific amount is based on your age and that of your spouse, the appraised value of your home, the location and type of home you have.

4. You receive the money tax-free. It is not added to your taxable income so it doesn’t affect Old Age Security (OAS) or Guaranteed Income Supplement (GIS) government benefits you may receive.

5. You can use the money any way you wish. Maybe you want to build up your savings and have extra income to cover your expenses. Perhaps you want to update your home or help your family without depleting your current savings. Or you have monthly debt payments you’d like to get rid of. The only condition is that any outstanding loans secured by your home must be retired with the proceeds from your CHIP Home Income Plan.

6. No payments are required while you or your spouse live in your home. The full amount only becomes due when your home is sold, or if you move out.

7. You maintain ownership and control of your home. You will never be asked to move or sell to repay your CHIP Home Income Plan. All that’s required is that you maintain your property and stay up-to-date with property taxes, fire insurance and condominium or maintenance fees while you live there.

8. You keep all the equity remaining in your home. 99 out of a 100 homeowners have money left over when their CHIP Home Income Plan is repaid. And on average, the amount left over is 50 per cent of the value of the home when it is sold.

9. Your estate is well protected. You are guaranteed that the amount to be repaid will never exceed the fair market value of your home at the time it is sold. If your heirs want to keep your home, they can repay the CHIP Home Income Plan from other funds.

10. You can save on taxes. If you decide to use the money you receive to buy non-registered investments such as GICs and mutual funds, you may be able to deduct the CHIP Home Income Plan interest charges from the income those investments earn. Be sure to consult a financial or tax advisor.

You can learn more about the CHIP Home Income Plan by visiting You’ll find:
• Interesting stories of how CHIP clients have used the money they received
• The interest rate terms you can choose and the interest rate discounts that are available.
• Easy-to-use tools to determine how much money you could receive

Visit Find out more about how to unlock the value in your home and enjoy life on your terms.

Please talk to your advisor to see if the CHIP Home Income Plan is right for you.