Frequently Asked Questions


Reverse mortgages are a great retirement income tool. With the right approach, reverse mortgages let you turn your home equity into tax-free cash which you can use for a comfortable future.

To find out more about the CHIP Reverse Mortgage, click on the questions to reveal the answers.

General Information

Rates and Fees

Selling/Leaving Your Home

Paying off the Mortgage / How death affects paying the Mortgage

Other Rules and Guidelines

Get the guide to learn how a Reverse Mortgage can help you achieve financial freedom in retirement!


General Information

Where can I receive Reverse Mortgage counseling and where can I 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 8:30AM to 5:00 PM (EST) to answer any questions you may have.

For detailed information about Reverse Mortgages, download our FREE information guide.

Which provinces does CHIP Reverse Mortgage service?

CHIP Reverse Mortgages are available in all Canadian provinces including:

  • Ontario
  • Quebec
  • British Columbia
  • Alberta
  • Nova Scotia
  • Saskatchewan
  • Manitoba
  • New Brunswick
  • Newfoundland and Labrador
  • Prince Edward Island


CHIP Reverse Mortgages are not available in the Territories:

  • Northwest Territory
  • Yukon Territory
  • Nunavut

Is CHIP affiliated to any affiliation/accreditation/regulatory body association?

CHIP Reverse Mortgage is offered by HomeEquity Bank, a Schedule 1 Canadian Bank and as such, is member of the Canadian Bankers Association. HomeEquity Bank is heavily regulated by the Federal Bank Act. The CHIP Reverse Mortgage is CARP (Canadian Association for Retired Persons) recommended and endorsed by the The Royal Canadian Legion.

What can I use my Reverse Mortgage funds for?

Reverse Mortgage funds are yours to use however you wish. CHIP Reverse Mortgages are often used to pay off debt, health care related costs, house renovations, income supplements, living expenses, and travel. If you have an existing mortgage or loans secured against your home, the proceeds of the Reverse Mortgage must first be used to pay-off these debts, then the remaining funds can be used for whatever you like!

Check out our blog for more information on how our current clients are using reverse mortgage funds.

How can I receive proceeds from a Reverse Mortgage? What are the various options to receive Reverse Mortgage funds?

Funding options for your Reverse Mortgage include receiving the proceeds of your Mortgage as a one-time lump sum payment or receiving scheduled payments over time to supplement your retirement income. These payment methods can also be combined to receive both as funds up front at time of closing and the rest in incremental scheduled payments.

More details about the Chip Reverse Mortgage Payment Options can be found in our blog.

Where can I read Customer Reviews for CHIP?

We love sharing our customer stories, check out our customer stories and reviews from our customer testimonials page. Check it out to see what makes CHIP the best Reverse Mortgage loan in Canada!

Rates and Fees

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 $1795 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.

What are the fees associated with a Reverse Mortgage?

In addition to the interest charged on the money borrowed, a Reverse Mortgage will typically involve paying the following nominal fees:

  • Appraisal Fee: paid to an external property appraiser
  • Independent Legal Advice: paid to a lawyer/notary of your choice for independent legal advice
  • Closing Cost: fee collected by HomeEquity Bank, financed through the proceeds of the Reverse Mortgage

For complete details about the costs of Reverse Mortgages please read our blog.

Selling/Leaving Your Home

What if my home sells for less/more than what I owe on the Reverse Mortgage?

If your home depreciates in value and the Mortgage amount due is more than the sale price, HomeEquity Bank will cover the difference between the sale price and the Mortgage amount as long as you have met your obligations under the mortgage, including paying your property taxes, maintaining your property and paying your home insurance. This is HomeEquity Bank’s Negative Equity Guarantee. Our conservative lending practices ensure that you will never owe more than the fair market value of your home. In most cases, your home will appreciate in value. In fact, 99% of clients have money left over when their Mortgage is repaid.

Check out our full guide on selling a house with a Reverse Mortgage.

What happens if I outlive the Mortgage? / Can I lose my home because I lived longer than expected?

With a Reverse Mortgage, you remain as the owner and the bank never takes ownership of your home, provided you have met your mortgage obligations*. Your Mortgage only becomes due when you sell your home, move out of your home or eventually pass away. The CHIP Reverse Mortgage is a non-recourse loan, meaning that the borrower will never owe more than the home is worth. Your obligation is to ensure that you are paying your property taxes, home insurance and that your property is well maintained.

*Obligations include paying your property taxes, maintaining your property and paying your home insurance.

What happens if my home gains value?

Any appreciation on the value of your home goes right back into your pocket. With a Reverse Mortgage, you only pay interest on the amount borrowed, not the appreciation on the home.

Watch this video to learn more about how your reverse mortgage would affect your home equity.

Paying off the Mortgage / How death affects paying the Mortgage

When I pass away, will my heirs be responsible for the repayment of the Reverse Mortgage?

When the borrower(s) pass away, the heirs will be responsible for repayment of the Reverse Mortgage. Typically, the heirs would make the choice to sell the property in order to repay the Reverse Mortgage amount.

What happens if I die during my Reverse Mortgage loan before I receive the full amount of my Mortgage?

In the event you pass away before taking out your Reverse Mortgage in its entirety, your heirs will only be liable to repay the amount of the loan (and the interest accrued) on that portion of the Reverse Mortgage.

When the loan becomes due, what amount must be repaid?

The Reverse Mortgage only becomes due once you move, sell the house or eventually pass away. If you are living in your home, HomeEquity Bank will not approach you for payments. Once the Reverse Mortgage becomes due, the total amount of the Mortgage plus interest would be due. This is typically covered by equity of the home and in most cases (99% of our clients), the sale of the house ends up covering the cost of the Mortgage plus leaving money left over.

Other Rules and Guidelines

How will a reverse mortgage affect my tax liability, Old Age Security (OAS), or pension benefits?

As a Reverse Mortgage is considered tax-free income, it will not affect Medicare or pension benefits. Because of this, the Reverse Mortgage is a terrific way to supplement post retirement income when your pension and Retirement Savings Plan (RSP) may not be enough to cover your expenses.

How much money do I qualify for from my home? /How is the amount I’ll receive from Reverse Mortgage Calculated?

Several factors determine how much money you can qualify for with a Reverse Mortgage. The following factors determine the amount you can borrow; all borrowers must be 55 years or older a (older usually means you would qualify for more), location, and the appraised value of the home. All factors considered, the maximum amount you may qualify for is up to 55% of the value of the home.

For more information and to see what your Reverse Mortgage can be worth, try our Reverse Mortgage Calculator.

Can Reverse Mortgage be given on a condo/apartment?

A Reverse Mortgage can be taken out on a variety of home types, for example: condos, apartments and semi-detached homes.

Will I still own my home with a Reverse Mortgage? / Will HomeEquity Bank own my home if I take a Reverse mortgage?

You will always maintain complete ownership of your home! When completing a Reverse Mortgage with CHIP you maintain complete ownership of your home and we will never force you to move from your home.

Check out our blog if you are still wondering Do I still own my house if I get a Reverse Mortgage?

What are the obligations of a Reverse Mortgage borrower?

As a Reverse Mortgage borrower, you will have a few responsibilities:

  • maintain basic home repairs
  • pay all property taxes
  • pay the home insurance

If applicable, the homeowner is also responsible for Condo Fees.
For more information on the responsibilities of a Reverse Mortgage borrower call us at 1-866-758-2447.

Do I need to have good credit for a Reverse Mortgage?/Will my credit history be checked to be eligible for Reverse Mortgage?

As part of our review of your application, we do request your consent to obtain a credit bureau. Your credit bureau is reviewed and is part of your decision process.

What documents are required to get a Reverse Mortgage and where do I find them?

If you are approved for a Reverse Mortgage you will be required to prepared and send the following documents. Note that individual circumstances vary and this is not intended to be a comprehensive list.

  • 2 forms of identification
  • Verification that the property is your principal address
  • Signed application
  • Required legal documents
  • Property Insurance information
  • Statement(s) on any existing mortgage (if applicable)
  • Proof that property taxes are up to date

What is the minimum property value for a CHIP Reverse Mortgage?

Your property must have an appraised value of at least $250,000 in order for you to be eligible for a CHIP Reverse Mortgage. The appraised value of your home is only one element in determining whether you are eligible and how much you qualify for. The other important factors are your age, the age of your spouse and the location of your home. Minimum advance amount is $25, 000.

Try out our Reverse Mortgage Calculator to see how much you may qualify for!

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