CHIP Reverse Mortgage (HomeEquity Bank)

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Designed exclusively for Canadian homeowners aged 55 and older, the CHIP Reverse Mortgage (formerly the Canadian Home Income Plan) offers a flexible, low-pressure way to access your home equity – without monthly payments or selling your property.

Why Choose the CHIP Reverse Mortgage?

Benefit Why It Matters
Access up to 55% of your home’s value Receive tax-free cash without selling or moving, giving you more flexibility in retirement.
Keep full ownership You remain the legal owner and stay in your home as long as it’s your primary residence.
No monthly payments Repayment only occurs when you sell, move, or pass away. With the Negative Equity Guarantee, you’ll never owe more than your home’s fair market value.
Simple, online application The entire process can be completed digitally, including contactless signing.
Trusted & highly rated CHIP is backed by HomeEquity Bank (A+ BBB rating) and has a 4.8/5 Trustpilot score.
spTime in business:

SEVERAL YEARS

spCustomers:

OVER 1,000

spTotal funded:

UNDISCLOSED

Products Offered

AMOUNT

Up to 55% of Home Value

INTEREST RATE

Fixed and variable interest rates

TERMS

Life Plan



Eligibility Requirements

To qualify for a CHIP Reverse Mortgage in Canada, homeowners must meet the following criteria:

Criteria Details
Age 55 years or older (both you and your spouse, if applicable)
Home Value Minimum appraised value of $250,000
Residence Must be your primary residence
Property Type/Location Must meet CHIP’s lending criteria
Repayment Conditions No monthly payments; repayment occurs only when you sell, move out, or pass away. You must keep property taxes, insurance, and maintenance up to date.



Available Options

CHIP offers several tailored product variants to meet different financial needs:

Product Name Key Features
CHIP Reverse Mortgage Classic option; access up to 55% of home value as tax-free cash. Choose lump sum or optional advances (minimum $25,000 initial advance).
CHIP Max Ideal for younger retirees (55+). Requires a slightly higher minimum home value ($300,000). Flexible advances available.
CHIP Open Designed for short-term needs or bridge financing. Repayable at any time with no prepayment penalties.
HomeBridge Tech-forward solution to gift equity to family members (such as down payment support), built on the CHIP structure.



Application Process (7 Simple Steps)

CHIP streamlines the process for Canadian homeowners. Here’s how it works:

  1. Initial consultation: Speak with a reverse mortgage specialist to review your needs.
  2. Home appraisal: Professional appraisal determines your home’s value and eligible funds.
  3. Qualification confirmation: Lender matches you with an amount and suitable product option.
  4. Select payment option: Choose a lump sum, scheduled advances, or a combination.
  5. Legal review: Independent lawyer provides advice and reviews the contract.
  6. Finalize paperwork: Complete all legal documents and confirm terms.
  7. Receive funds: Your money is released as agreed — tax-free.



Interest Rate Options

CHIP Reverse Mortgage borrowers can choose between:

  • Fixed-term rates: 6-month, 1-year, 3-year, or 5-year fixed terms.
  • Variable rates: Tied to Prime.

As of early 2025, typical CHIP rates include ~6.69% (6.99% APR) for a 5-year fixed, or Prime + 2.65% (~7.94%) for variable.



Equity Preservation Insight

Worried about losing too much home equity? On average, CHIP customers retain over 50% of their home’s value after repaying the reverse mortgage. This means you can unlock needed cash flow while still preserving a meaningful portion of your estate.



Contact information

  • cont1881 Yonge St, Toronto, Ontario M4S 3C4
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Availability:

All of Canada

Support Offered:

  • Help Centre & Blog
  • Email Support
  • Call Centre
  • Reverse Mortgage Calculator
  • Social Media
  • Free Guide

Call Center:

No call centre hours provided
Frequently Asked Questions About CHIP Reverse Mortgage (HomeEquity Bank)

What is the CHIP Reverse Mortgage?

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The CHIP Reverse Mortgage allows Canadian homeowners aged 55 and older to access up to 55 percent of their home’s appraised value in tax-free cash without having to sell or move. Unlike a traditional mortgage, there are no monthly payments required, and the loan is repaid only when the home is sold, the homeowner moves, or the last homeowner passes away.

How much money can I access?

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The amount you qualify for depends on factors such as your age, home value, location, and type of home (detached house, condo, townhouse, etc.). Your eligibility is assessed individually, and on average, homeowners can access up to 55 percent of their home’s value while still retaining significant equity.

What are the interest rates for a CHIP Reverse Mortgage?

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CHIP Reverse Mortgage rates are available in fixed and variable options. A fixed rate offers stability over a set period (e.g., one, three, or five years), while a variable rate fluctuates with the Bank of Canada’s prime rate. While reverse mortgage rates are slightly higher than traditional mortgage rates, they provide the benefit of no required monthly payments.

What happens if my home value decreases?

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The CHIP Reverse Mortgage includes a No Negative Equity Guarantee, meaning that you or your heirs will never owe more than the fair market value of the home at the time of sale. As long as property taxes and insurance are maintained, you are protected even if the home’s value declines.

How does a CHIP Reverse Mortgage affect estate planning?

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Since homeowners retain ownership of their home, they can still pass it down to their heirs. If the home’s value exceeds the loan balance at the time of sale, the remaining funds go to the estate.

How do I apply for a CHIP Reverse Mortgage?

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Applying for a CHIP Reverse Mortgage is a simple process that can be completed from the comfort of your home. It begins with speaking to a CHIP Reverse Mortgage specialist to determine your eligibility. Once confirmed, you will complete an application and have your home appraised to assess its value. After that, you will review the loan offer with independent legal advice to ensure you fully understand the terms. Once everything is finalized, you will receive your tax-free cash, either as a lump sum or in scheduled payments.

How does the CHIP Reverse Mortgage work?

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The CHIP Reverse Mortgage provides either a lump sum or scheduled cash advances based on your home equity. Interest accumulates on the loan, but there are no required monthly payments. The loan is repaid when the home is sold or when the last homeowner leaves the property. On average, CHIP customers retain over 50 percent of their home’s value even after repayment.

What can I use the funds for?

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The funds from a CHIP Reverse Mortgage can be used however you like, whether it’s for paying off debts, covering medical expenses, funding home renovations, helping children or grandchildren financially, or simply maintaining your lifestyle. The loan is tax-free, and there are no restrictions on how you use the money.

Will I still own my home?

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Yes. With a CHIP Reverse Mortgage, you remain the full owner of your home. The loan is secured against your property, but ownership remains in your name, allowing you to continue living in your home for as long as you choose.

How is the loan repaid?

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You are not required to make monthly mortgage payments. The loan is repaid when you sell your home, move out permanently, or upon the passing of the last homeowner. At that time, the proceeds from the home sale are used to cover the loan, and any remaining equity belongs to you or your heirs.

What are the costs associated with a CHIP Reverse Mortgage?

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Like a traditional mortgage, a CHIP Reverse Mortgage has standard costs, including an appraisal fee (to determine home value), legal fees (for independent legal advice), and an administrative fee (to cover processing costs). These fees are typically deducted from the loan proceeds.

CHIP Reverse Mortgage (HomeEquity Bank) Reviews
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Avg. Rating: 5.0 (1 review)

CHIP saved us!
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“We are extremely blessed to have come across the CHIP reverse mortgage. It has not only relieved our anxiety but also gave us peace of mind during a tough time. ”



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