It is always nice when a lender takes the feedback they receive from their customers and business partners and makes changes to improve their products.
HomEquity Bank the provider of the CHIP Reverse Mortgage and Income Advantage products is one of those lenders. The Income Advantage product was designed to provide borrowers with an on-going stream of income to help people supplement their other sources of income. However, this program did not allow seniors to access as much equity that they could under the CHIP Reverse Mortgage. In addition some customers had commented that it was difficult to understand which option was best for them.
With that in mind, the following changes were made to make it easier for borrowers to understand their options. Here are the details:
- Monthly or Quarterly Advances – If you want the convenience of regular deposits into your bank account then the Income Advantage product is for you. If you are looking at larger lump sum deposits then the CHIP Reverse Mortgage is the best option for you.
- Maximum Loan Available – Both the Income Advantage and CHIP Reverse mortgage now allow you to access up to 55% of the value of your home.
- Interest Rates – Both the Income Advantage and CHIP Reverse mortgage will offer the same interest rates.
Look at the table below to see how the Income Advantage and Chip Reverse Mortgages now compare:
We have had so many changes to the mortgage rules in the last few years and with each rule change it has become more and more difficult for the average person to understand what is the right mortgage option for them. Nice to see a change that makes things easier to understand.
If you want to find out if a Reverse Mortgage is the right option for you please give me a call at 604-961-2400.