Transcript Chip_Powerpoint

Tapping into Canada’s
Fastest Growing Segment:
Exploring New Market Opportunities
CHIP and HomEquity Bank….who are we?
CHIP was established in 1985
2009- Canada’s Leading National Reverse Mortgage Provider
becomes a Schedule 1 Chartered Bank
Only Canadian National provider of CHIP Home Income Plan
2014 projection: To fund 334,000,000
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Where does HomEquity Bank receive
their CHIP clients?
Consumer Call Center
Banks & Credit Unions
Mortgage Brokers
Financial Planners
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Canada’s Fastest Growing Market Segment
and Opportunity
Seniors are the fastest growing segment of
Canada’s population
 There are 6.8 million seniors (60+)1
 19% growth in the next 6 years1
 Approximately 1,000 people turn 60 every
day2
 With a growth rate of 29%, Canadians
between the ages of 60 and 64 are the
fastest growing group3
 50% chance of living to 92
 51% carrying debt into retirement
 61% want to stay in their homes
 50% believe they will run out money
within 10 years
1 HRSDC calculations based on Statistics Canada, 2011
2 Statistics Canada. Table 051-0001 - Estimates of population, by age group and sex for July 1, 2010
3 Highlights of "Canada’s aging Boomers place new strain on pensions, health care: Census"
Released by Postmedia News May 29th, 2012
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Brokers Fastest Growing Opportunity
77% of a senior’s net worth is home
equity7
Investment
Assets
(Reg/non-Reg)
23%
1.4 million seniors own their own
home and are mortgage free8
84% of seniors don’t want to
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move9
Home
Equity 77%
What do These Clients Look Like
Opportunity for Mortgage Brokers!
 No Opportunity to pay for Life Eventsmedical care, home repairs
 Retired with debt and looking for payment
options
 Have not saved enough to maintain lifestyle
for the next 30 years
 Portfolio has not performed as well as
planned
 Considering downsizing/right sizing
 Want to travel
 Want to buy a second home- Snow birds
 Help children or grandchilden purchase a
home
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What information is needed to Qualify for a
Reverse Mortgage?
1. Client(s) Birthdates
2. Property address including postal code
3. Property type
4. Property Value
No income…….No Credit
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CHIP Home Income Plan
Solution- Major Features
Eligibility
Value
Flexibility and
Choice
 Homeowners age 55 and older
 No income qualification
 No credit requirements
 Qualify for up to 50% of the home’s value
 Money can be received as a lump sum or over time or combination
 Tailor to suite your needs
 No payments required until the house is sold or both owners move out
 Clients have the option to repay the principal and interest in full at any
time
 Clients also have option to pay interest monthly
 Owner maintains title
Ownership and  They can move or sell any time
Estate Protection  Amount to be repaid is guaranteed not to exceed the fair market value
of the home at the time it is sold
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CHIP Home Income Plan Solution Costs
 Appraisal cost: $235 - $400
 Independent legal advice:
$300 - $600
 Set up Fees $595 to $1995
 Interest rates prime +1 ¼ to
5.49%
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Greater Vancouver
Average Annual Home Value Increase rates
13 years
23 Years
33 Years
2000 - 2013
1990 - 2013
1980 - 2013
+ 12. 8 % average Annual Increase
+ 10. 4 %
+ 20. 2 %
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
Historical data provided by: Real estate Board of Greater Vancouver Jan 2014
12
20
13
11
10
9
8
7
6
5
4
3
2
1
99
20
00
98
97
96
95
94
93
92
91
89
19
90
88
87
86
85
84
83
82
81
19
80
0
How does a Canadian
Home Income Plan
Reverse Mortgage work?
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