What is the CHIP Reverse Mortgage?
CHIP is a reverse mortgage, a loan secured against the value of your home. It lets you unlock the value in your home without having to sell or move away. The money you receive is tax-free and yours to use as you wish.
A reverse mortgage can help you pay off debts, handle unexpected expenses, improve your standard of living, along with many other benefits.
Benefits of CHIP
Keep your home. Stay in your home and community. Maintain complete ownership and control of your home for as long as you choose to stay.
No payments. With CHIP you never make a payment until you decide to move or sell.
Relieve financial stress. Use up to 55% of the equity in your home to pay off debts or handle unforeseen expenses.
Enjoy retirement. The money you access through CHIP is tax-free.
Take control. Get your finances under control and gain the freedom to set your own plans and priorities.
How CHIP works
If you’re a Canadian homeowner over the age of 55 and living in your primary residence, you may qualify for a reverse mortgage—no health check required. This option allows you to access up to 55% of your home’s appraised value, tax-free. It’s a flexible solution that lets you tap into your home equity without needing to sell or make monthly payments.
You remain the owner of your home and can continue living in it as long as you maintain the property, keep up with property taxes and insurance, and stay in good standing. When you eventually move or sell, the loan is repaid from the proceeds, and any remaining equity is yours. If you’re considering the CHIP Reverse Mortgage, speak with your family or advisor—and feel free to contact me for more information.
Frequently Asked Questions
A CHIP Reverse Mortgage is secured by the equity in your home. Unlike a traditional mortgage in which you make regular payments to someone else, a reverse mortgage pays you. The big advantage with the CHIP Reverse Mortgage is that you do not have to make any regular mortgage payments for as long as you or your spouse lives in your home.
The CHIP Reverse Mortgage is designed exclusively for homeowners age 55 and older. This age qualification applies to both you and your spouse.
You can receive up to 55% of the value of your home. The specific amount is based on your age and that of your spouse, the location and type of home you have, and your home’s current appraised value. You can contact me and I can quickly give you an estimate of how much you may be approved for.
You can choose how you want to receive the money. The CHIP Reverse Mortgage gives you the option of receiving all the money you’re eligible for in one lump sum advance, or you can take some now and more later, or you can receive planned advances over a set period of time. Planned advances are available on the Income Advantage product.
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.
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.
Many of our clients use a reverse mortgage to pay off their existing mortgage and debts.
No. Many financial professionals recommend a reverse mortgage to supplement monthly income instead of selling and downsizing, or taking out a conventional mortgage or a line of credit.
There are one time fees to arrange a reverse mortgage such as an appraisal fee, fee for independent legal advice as well as our fee for administration, title insurance, and registration. With the exception of the appraisal fee, these fees are paid for with the funding dollars
There are no monthly payments required as long as the homeowner is living in the home