As a certified reverse mortgage specialist who has been working over the past decade with CHIP – our only national provider of reverse mortgages in Canada, I am pleased to provide the benefits of this niche mortgage product.

Unlock your Home Equity with a trusted lender

Our lender, CHIP Home Income Plan, is the only national provider of reverse mortgages in Canada. CHIP has been Canada’s leading provider of reverse mortgages for more than 25 years. CHIP is a trusted partner with all the major banks in Canada, with foreign and regional banks, wealth management companies and mortgage brokers.

You choose how to receive up to 55% of your home’s appraised value

We’ll tailor your CHIP reverse mortgage to specifically meet your needs. Once approved, you decide how much you want to take and when you want to take it. You can take the entire amount in a lump sum, or take a little now and more as needed. You can also choose planned advances, deposited into your bank account monthly, quarterly, semi-annually, or annually over a set period of time.

You maintain ownership and control of your home

A CHIP reverse mortgage does not give up ownership of your home. Just like a traditional mortgage, a reverse mortgage is registered on title, but your home always remains in your name. You can sell or move any time you want to. You can also pay back the reverse mortgage any time you want to.

Is my home still mine?

Absolutely. A CHIP reverse mortgage does not give up ownership of your home. Just like a traditional mortgage, a reverse mortgage is registered on title, but your home always remains in your name. You can sell or move any time you want to. You can also pay back the reverse mortgage any time you want to.

You receive the money tax-free which does not affect government benefits you may receive

The money you receive is not taxable income and will not affect government benefits you may currently receive, such as Old Age Security (OAS) pension, or the Guaranteed Income Supplement (GIS).

You can save on taxes

If you decide to invest some or all of your proceeds, you may be able to deduct the reverse mortgage interest against your taxable income. This is a very powerful way to generate a non-taxable income stream to supplement your retirement income. For more information on using a reverse mortgage to invest & save on taxes, we recommend talking to a Certified Financial Planner.

You and your estate are well protected

Unlike traditional lending, there is ZERO risk of ever losing your home – even if it depreciates in value over time. With other traditional loans, such as a line of credit, the loan can be recalled or you may default on your loan and lose your home altogether. With a CHIP reverse mortgage there is no risk of default and the loan is guaranteed never to exceed the fair market value of your home.

You decide what to do with the remaining home equity

In over 25 years of experience, 99% of CHIP Home Income Plan clients have money left over when the loan is repaid.

The reason:

  • the reverse mortgage is ultra conservative (only up to 50% of the appraised home value).
  • the fact that house prices, over the long-term, continue to appreciate in value for most homes.