Horizon Equity Helping Canadian Seniors Boost Retirement Income in Tough Times
March 27, 2009 (PRLEAP.COM) Business NewsEDMONTON, ALBERTA - March 27, 2009 – Many Canadian seniors are supplementing their retirement incomes in these uncertain economic times by accessing some of their home equity through the Canadian Home Income Plan (CHIP), known as a reverse mortgage.
CHIP, offered through Horizon Equity, allows Canadian seniors to access up to 40% of their home equity (depending on their outstanding mortgage balance, age, and a few other factors), and can receive the funds in one lump sum payment or through monthly payments. With the funds accessed through CHIP, seniors are able to substantially increase their retirement cash flow, which creates peace of mind in times of economic hardship.
Accessing a CHIP home equity loan is also 100% tax-free. Because the money seniors are withdrawing is equity in their home, it's already after-tax dollars. CHIP further affects cash flows in a positive way, in that the payments are not considered retirement income because seniors are simply accessing their home equity. This means Old Age Security (OAS) and Canadian Pension Plan (CPP) payments will not be clawed back or decreased.
The best thing about the Canadian Home Income Plan is that there are no debt repayments required by Canadian seniors who utilize it. The only instances where a Canadian reverse mortgage would need to be repaid are if both seniors move out of the property or pass away. Therefore, they can use CHIP as long as they need to without worrying about repayment.
CHIP reverse mortgage products are provided through Horizon Equity, a division of First Foundation Residential Mortgages in Alberta, Canada. Interested Canadian seniors can find out more about Horizon Equity and the CHIP reverse mortgage offering by visiting www.horizonequity.ca.
About First Foundation
First Foundation Residential Mortgages was founded in 2002 in Edmonton, Alberta as a response to growing consumer demand for more competitive mortgage options. The Edmonton mortgage company originates mortgages for many of the largest financial institutions in Canada, including several chartered banks, trust companies, mortgage-backed securities lenders, and credit unions. First Foundation specializes in reducing the overall cost of mortgages for its clients with highly competitive rates and mortgage strategies, such as the popular Smith Manoeuvre.
Canadian Home Income Plan is an established and leading provider of simple and sensible financial solutions for seniors over 60 years of age. Founded in 1986, CHIP has helped thousands of Canadians access the equity in their homes to improve cash flow. Recognized as the industry leader in home equity lending to seniors, CHIP has a well-established distribution network, including national chartered banks, credit unions, mortgage brokers, and investment and financial planning firms. CHIP is a wholly owned subsidiary of Home Equity Income Trust (HOMEQ). HOMEQ is listed on the Toronto Stock Exchange (TSX) under the symbol HEQ.UN.