CHIP - What is the Income Advantage?
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What is Income Advantage?
Income Advantage from HomEquity Bank is a loan secured against the value of your home.
It lets you convert part of your home equity into cash — without requiring you to sell or move.
Depending on your circumstances, Income Advantage may be the right tool to help:
- Provide you with additional income;
- Preserve your investment portfolio longer;
- Lower your tax liability long term*
Income Advantage gives you choice and flexibility. You maintain complete ownership and control of your home. You can access your money in monthly installments or initial and periodic advances.
Frequently Asked Questions
Who can qualify?
Income Advantage requires no credit or health checks. You qualify if you’re over 551, own your home, and use it as your primary residence.
How much of my home equity can I access through Income Advantage?
Income Advantage lets you access up to 40% of your home’s appraised value.
How will I receive my money?
It’s up to you. You can receive your money monthly, in a single lump sum, or through periodic advances — or choose a combination of these options.
Do I have to pay tax on my Income Advantage money?
No. It’s tax-free because you are unlocking home equity from your primary residence.
Can I repay my balance early, before the sale of my home?
Yes. You or your spouse can repay the principal or interest at any time — in full or on an annual or monthly basis2.
When it’s time to repay the loan, could my other assets be affected?
We guarantee that the amount to be repaid will never exceed the fair market value of your home. Your other assets are completely protected.
Who offers this product?
Income Advantage is a product of HomEquity Bank, a Schedule 1 Canadian bank. It is available through all of Canada’s major banks, and through many credit unions, mortgage brokers, and financial advisors.
* Always consult your accountant or financial advisor.
1 This age requirement also applies to your spouse.
2 A prepayment charge may apply.