Through the CHIP Home Income Plan, homeowners 55+ can access up to 55% of the current appraised value of their principal residence.
The exact amount available will depend on the age of the homeowner and his or her spouse as well as the location and type of home. The funds are tax-free and there are no restrictions on how they can be used – with the exception that any outstanding loans secured by the home must be paid off. You might use the money to invest, to renovate your home, downsize with a new home purchase, or simply to improve your lifestyle. Homeowners can choose to take a lump sum or to receive funds over time.
No regular repayments are required; the loan does not become due until the home is sold or both homeowners move out. Interest is added on to the original amount borrowed. When the amount is repaid, all remaining equity in the home belongs to the homeowners (or their estate). You continue to own your home!