How is that magic number calculated? The magic number being the amount of eligible loan that you can receive on a reverse mortgage.
There are a few factors that are unique to you dictate what that number will look like. They are:
- Age of you and your spouse, if applicable
- Location of home based on postal code
- Type of home – single family dwelling, condo, townhouse, etc.
- Value of home – using your property tax assessment value is usually a reasonable starting point
The above values are entered into the Home Equity Bank Calculator. That information in conjunction with actuarial tables (life expectancy predictions), your area’s real estate valuation trends and interest rate forecasts will then result in the loan amount for which you are eligible.
The resulting number can change over time so please remember the eligible loan value you receive from me today may be slightly different in a couple of months due to the above mentioned factors.
If you reside in Vancouver, Victoria and Kelowna which are considered ‘A’ areas for lending which are you will be provided with two eligible loan amounts. One for the standard CHIP, Income Advantage and CHIP OPEN products and a higher value for the CHIPMax product. Please see the following pages for more information on how these products differ:
