HomeEquity Bank Launches Short-Term Reverse Mortgage Product with CHIP Open
- CHIP Open is a short term loan of one to three years with variable duration only
- Customers can convert CHIP Open to CHIP Reverse Mortgage if a long term loan is more appropriate to meet their financial needs
- Customers can refund 100% of the balance at any time with no prepayment charge (full payments only, no partial payments)
TORONTO, September 10, 2020 / CNW / – HomeEquity Bank announced today that it is launching CHIP Open, a new financial option for Canadians 55 and older who want to take advantage of their home equity. This Short Term Reverse Mortgage is designed for people interested in an immediate financial solution without a prepayment penalty.
CHIP Open offers owners aged 55 and over a variable term of three years with access to a minimum loan amount of $ 25,000 and up to 55 percent of the appraised value of their home. This is the best option for:
- Bridge financing – for people who own a home and need a short-term mortgage, CHIP Open can finance the purchase of a new home
- Short-term cash flow – for people who need a short term loan, but are discouraged by the additional prepayment charges of private lenders
- Help a family member – for people who wish to help a family member in financial difficulty
- Renovations – for people who plan to renovate their home and sell soon after
“As the only Canadian bank focused solely on the needs of homeowners 55 and over, we know this is a product they demand and we are delighted to provide them,” said the President and CEO of HomeEquity Bank. Steven ranson. “The goal is to give people a short-term solution to an immediate financial need without any prepayment penalties.”
While CHIP Open is a short term loan of one to three years with variable terms only, it can be easily converted to a CHIP reverse mortgage loan at any time if a longer term solution is more appropriate. For example, this could be a great option for homeowners who want to help their kids buy their first home. If the CHIP Open Loan cannot be repaid in the short term, it can be converted to a CHIP Reverse Mortgage and can be treated as a pre-inheritance.
“We know that sometimes homeowners need extra cash that they just don’t have cash,” says Yvonne Ziomecki, vice president vice president of marketing and sales for HomeEquity Bank. “CHIP Open offers this and more, with the ability to refund if circumstances change. It’s the perfect addition to our existing offering.”
About HomeEquity Bank
HomeEquity Bank is a Schedule 1 Canadian bank that offers CHIP Reverse Mortgage and CHIP Open solutions. The company was founded over 30 years ago as an annuity-based solution to the financial needs of Canadians who wanted access to equity in their main asset – their home. The Bank is committed to giving Canadians 55 and over the means to live the retirement they deserve, in the home they love. HomeEquity Bank is a holding company of Birch Hill Equity Partners Management Inc., a mid-sized private equity firm based in Toronto with over $ 3 billion in capital under management. For more information visit www.puce.ca.
For more information: Morgan McLellan, E: [email protected], C: 647-802-4825; Matt Roth, E: [email protected], C: 647-518-6754