HomeEquity Bank, the largest reverse mortgage lender in Canada, has launched a new product variation designed to offer Canadian seniors a short-term reverse mortgage product that they can use to cover specific tasks. “CHIP Open” is an alternative to the standard “CHIP Reverse Mortgage,” and is designed for Canadians aged 55 and older who are interested in a short-term, immediate financial solution with no prepayment penalties.
CHIP Open offers qualifying homeowners a three-year variable term with access to a minimum loan amount of $25,000 CAD, and up to 55% of the appraised value of their home, according to an announcement from HomeEquity Bank.
The new solution is designed to offer options for seniors in Canada who may be looking for things like bridge financing for people who own a home and need a short-term mortgage to finance a home purchase; short-term cash flow particularly for those who may be averse to prepayment penalties from private lenders; helping a family member; or performing home renovations.
“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,” said HomeEquity Bank President and CEO Steven Ranson in an announcement of the new product offering. “The goal is to give people a short-term solution to an immediate financial need with zero prepayment penalties.”
If a borrower determines that a short-term solution is no longer appropriate for their situation, then they can convert it into the standard CHIP Reverse Mortgage product variation.
“We know that sometimes homeowners are in need of extra funds that they simply don’t have in liquid cash,” said 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.”
HomeEquity Bank has been making waves across the global reverse mortgage industry particularly due to its advertising. Most recently, the bank announced a partnership with a former fraudster-turned-security consultant to help seniors spot when they may be the target of a scam.
The bank has also been using an abundance of market research to help shape much of its messaging, creating humor-oriented ads that were also shown by company executives at the 2019 National Reverse Mortgage Lenders Association (NRMLA) Annual Meeting and Expo in Nashville.