- CHIP Open is a short-term loan of one to three years on a variable term only
- Customers can convert CHIP Open to the CHIP Reverse Mortgage if a long-term loan is more appropriate to suit their financial needs
- Customers can repay 100 per cent of the balance at any time with no prepayment charges (full payments only, no partial payments)
TORONTO, Sept. 10, 2020 /CNW/ - HomeEquity Bank announced today it is introducing CHIP Open, a new financial option for Canadians 55+ looking to tap into their home's equity. This short-term reverse mortgage loan is designed for people who are interested in an immediate financial solution with no prepayment penalties.
CHIP Open provides homeowners aged 55+ a three-year variable term with access to a minimum loan amount of $25,000 and up to 55 per cent of the appraised value of their home. It is the best option for:
- Bridge financing – for people who own a home and need a short-term mortgage, CHIP Open can finance the new home purchase
- Short-term cash flow – for people who need a short-term loan, but are discouraged by the added prepayment fees of private lenders
- Helping a family member – for people who would like to help a family member experiencing financial hardship
- Renovations – for people who plan to renovate their homes and sell shortly thereafter
"As the only Canadian bank solely focused on the needs of homeowners aged 55 and up, we know this is a product they've been asking for and we're pleased to provide it," says HomeEquity Bank President and CEO Steven Ranson. "The goal is to give people a short-term solution to an immediate financial need with zero prepayment penalties."
While CHIP Open is a short-term loan of one to three years on a variable term only, it can be easily converted into the CHIP Reverse Mortgage at any time should a long-term solution be more appropriate. For example, it could be a great option for homeowners looking to help their children buy their first home. If the CHIP Open loan cannot be repaid within the short-term period, it can be converted to a CHIP Reverse Mortgage and can be treated as a pre-inheritance.
"We know that sometimes homeowners are in need of extra funds that they simply don't have in liquid cash," says Yvonne Ziomecki, HomeEquity Bank's EVP of Marketing and Sales. "CHIP Open provides that and more, with the flexibility to repay if circumstances change. It is the perfect addition to our existing offering."
About HomeEquity Bank
HomeEquity Bank is a Schedule 1 Canadian Bank offering the CHIP Reverse Mortgage and CHIP Open solutions. The company was founded more than 30 years ago as an annuity-based solution addressing the financial needs of Canadians who wanted to access the equity of their top asset – their home. The Bank is committed to empowering Canadians age 55 plus to live the retirement they deserve, in the home they love. HomeEquity Bank is a portfolio company of Birch Hill Equity Partners Management Inc., a mid-market private equity firm based in Toronto with more than $3 billion in capital under management. For more information, visit www.chip.ca.
SOURCE HomeEquity Bank
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