CHIP Reverse Mortgage

CHIP is a reverse mortgage, a loan secured against the value of the home. Unlike a loan or a regular mortgage, with CHIP you are not required to make regular mortgage payments. The loan is repaid only when the homeowners no longer live in the home.

The homeowner is required to keep the property in good condition, up-to-date with property taxes and property insurance. The money received is tax-free and can be used however the homeowner wishes.

A CHIP Reverse Mortgage can help your clients:

  • Pay off debts
  • Handle unexpected expenses
  • Help children or grandchildren
  • Improve day-to-day standard of living
  • Make a special trip or purchase

Enjoy retirement.

The money accessed through CHIP is tax-free and will not affect CPP or OAS.

HomEquity Bank Prime Rate: 3.45%

For Québec: click here to download HomEquity Bank’s current rate sheet.

For all provinces outside Québec: The following is a summary of the current CHIP Reverse Mortgage interest rates and terms offered by HomEquity Bank.

Variable3 5.74% $1,795 6.02%
6 Month 5.74% 6.02%
1 Year 5.74% 6.02%
3 Years 6.24% 6.53%
5 Years 6.49% 6.78%

1 These fees may vary based on individual circumstances.
2 APR is the estimated cost of borrowing for 5 years expressed as an annual percentage. It is based on a mortgage of $150,000 and includes the applicable closing costs.
3 Variable refers to the HomEquity Bank Prime Rate plus a fixed spread of 2.29%. The fixed spread is guaranteed for 5 years. For contract 21-30, the variable rate is 6.14%


CHIP requires no health checks. It is required that your clients  are over 551, own the home, and use it as the primary residence.

1 This age requirement also applies to the spouse

We guarantee that the amount to be repaid will never exceed the fair market value of your client’s home. Their other assets are completely protected.

CHIP lets your clients access up to 55% of their home’s appraised value

The homeowner keeps all the equity remaining in the home. In our many years of experience, over 99% of homeowners have money left over when their loan is repaid.

The equity remaining depends on the amount borrowed, the value of the home, and the amount of time that’s passed since the reverse mortgage was taken out.

The CHIP Reverse Mortgage is structured to ensure your clients get the money they need in precisely the way they want it. Whether they wish to receive the money over time or in one lump sum, the choice is theirs.

No. The homeowner retains title and maintains ownership of the home. It’s required for the homeowner to live in the home, pay taxes on time, have property insurance, and maintain the property in good condition.

No. It’s tax-free because they are unlocking home equity from their primary residence.

Many of our clients use a reverse mortgage to pay off their existing mortgage and debts.

Yes. Your clients can repay the principal or interest at any time — in full or on an annual or monthly basis2.

2 A prepayment charge may apply.