As you’ve probably seen, the literature throughout the Horizon Equity website states that with a Canadian Home Income Plan (CHIP) reverse mortgage, you are able to withdraw your home equity by means of one lump sum payment, or periodic payments over time.
Choosing to receive your Reverse Mortgage payment by lump sum is pretty self explanatory. You receive one large payment that you can do with as you please, whether it be put it into your bank account, invest it, or use it to upgrade your home etc.
The option to receive periodic payments from CHIP is called a Planned Advance. This gives you the ability to take a predetermined amount of money for your own use each month, quarter or year. This amount can be changed at any time to suit your personal needs as they change.
Overall, a CHIP reverse mortgage is very flexible in regards to its payment methods. You do have options, and you can choose which option suits you the best. If you’re interesting in exploring if a CHIP reverse mortgage through Horizon Equity is right for you, please Contact Us today!