CHIP Reverse Mortgage
What is the CHIP Reverse Mortgage?
The CHIP Reverse Mortgage is a loan secured against your home, allowing homeowners aged 55+ to unlock their equity without selling or moving. The money you receive is tax-free and can be used as you choose.
With CHIP, Canada’s leading reverse mortgage product, you can access up to 55% of the equity2 in your home without having to move or sell. Unlock tax-free cash to support retirement, pay off debt, renovate, or achieve your retirement goals.
Benefits of the CHIP Reverse Mortgage:
- Keep your home with full ownership1
- No payments until you move or sell
- Flexible use of tax-free funds
- Access up to 55% of your home equity2
- Does not affect OAS or GIS income
- No Negative Equity Guarantee3
How you can use the CHIP Reverse Mortgage:
Pay off debts or consolidate loans
Use your home equity to consolidate high-interest debt, pay off credit cards, or cover outstanding loans, reducing financial stress.
Fund home repairs, renovations, or other big projects
Upgrade or renovate your home to maintain comfort, improve value, adapt for retirement living, or complete the big project you’ve always wanted to.
Travel, hobbies, or pursuing personal goals
Whether it’s pursuing new hobbies, traveling the world, or achieving personal goals, your equity can provide flexible cash for your priorities.
Cover Unexpected Expenses
Ease the shock of unexpected expenses with your tax-free funds.
Eligibility for the CHIP Reverse Mortgage
To be eligible for the CHIP Reverse Mortgage you must be:
- A Canadian homeowner
- Both you and your spouse must be 55+
- Home must be your primary residence
- Home must have a minimum appraised value of $250,000 CAD
- Other eligibility requirements may apply call 1-866-758-2447 to find out if you are eligible
How Does the CHIP Reverse Mortgage Work?
- Get your FREE estimate
- Speak with one of our specialists
- Choose how to access funds
- Enjoy financial freedom
- Repay later when you sell, move, or pass away
1 Must maintain property, pay property taxes and homeowners’ insurance, and abide by your mortgage obligations.
2 Some conditions apply
3 The guarantee excludes administrative expenses and interest that has accumulated after the due date.
Frequently Asked Questions
1. Can you get a CHIP Reverse Mortgage if you have a mortgage?
Yes, provided your current mortgage will be paid off using the proceeds of a CHIP Reverse Mortgage.
2. How is a CHIP Reverse Mortgage paid back?
You are not required to make any payments on a CHIP Plan until you choose to move or sell your home. You are, however, required to ensure that your property taxes and homeowners’ insurance are kept up to date. When you do decide to move or sell, the loan is repaid from the proceeds of the sale of the home. After the loan is repaid, all remaining money belongs to you and your estate.
3. Who owns the house?
You will always maintain complete ownership of your home1! With the CHIP reverse mortgage, you maintain complete ownership of your home1, and we will never force you to move from your home.
4. Where can I receive reverse mortgage counseling and get more detailed information from a reverse mortgage professional?
For reverse mortgage counseling, please give us a call at 1-866-758-2447 and we can walk you through any of your questions or concerns. Our reverse mortgage professionals are available weekdays from 8:30 AM to 5:00 PM (EST) to answer any questions you may have.
For detailed information about CHIP Reverse Mortgages, download our FREE information guide.
5. How are the fees and interest rates for a reverse mortgage calculated?
CHIP Reverse Mortgage interest rates are available in both fixed and variable terms. The variable rate will fluctuate as it is directly influenced by the Bank of Canada’s prime rate. If the Bank of Canada’s prime rate increases, for example, your Reverse Mortgage interest rate will also increase. Our fixed rates are set for a pre-determined timeframe and are available for a six-month, 1-year, 3-year or 5-year period.
The closing fee charged by HomeEquity Bank for most clients is $1,795, although individual circumstances do vary. The closing fee is deducted from the proceeds of the mortgage, instead of being paid out of pocket. The closing fee covers legal, administrative costs, discharging any prior mortgage and registration of the CHIP Reverse Mortgage. Learn More about CHIP’s fixed and variable Reverse Mortgage Interest Rates.
6. Am I able to get a CHIP Reverse Mortgage with a low credit score?
Yes, The CHIP Reverse Mortgage is designed specifically to assist Canadian homeowners 55+ and improve their financial situation. While your credit score is a consideration, we take a holistic view of your financial history. The loan amount you’re approved for is also based on factors like your age, the appraised value of your home, its location, and your personal debts.
7. Will I have to pay taxes for the additional retirement income?
No, a reverse mortgage is considered tax-free income, thus Medicare or pension benefits will not be affected.
For more information, and to see what your Reverse Mortgage can be worth, try our Reverse Mortgage Calculator.
For more questions, please see our complete list of Frequently Asked Questions or call 1-866-758-2447 to get your questions answered by a reverse mortgage professional.
