Learn About Reverse Mortgages

The following is information pertaining to HomEquity Bank’s CHIP Reverse Mortgage product.







CHIP Reverse Mortgage
Fact Sheet

 The following is information pertaining to HomEquity Bank’s CHIP Reverse Mortgage product:

Purpose of Funds

  • Finance, refinance, purchase (owner occupied principal residence).
  • Help seniors who want to remain in their homes.
  • Cover life expenses (debt, renovations/improvement, travel, help children/grandchildren).
  • Pay for in-home care or medical expenses.

Plans Available

  • Lump-sum (single advance of all available funds).
  • Subsequent advance (partial initial advance and open for future advances).

Maximum LTV

  • Up to 55% for a CHIP Reverse Mortgage (dependent upon age, location and type of home).

Mortgage Amount

  • Minimum $25,000 for lump-sum initial advance.
  • Minimum $5,000 for each subsequent advance.


  • 6 month fixed, 1 year fixed, 3 year fixed, 5 year fixed.
  • 5 year variable rate mortgage.


  • None


  • No regular monthly payment is required.

Prepayment Privileges

No prepayment charge applies:

  • On regular interest payments of a fixed amount by automatic withdrawal
  • On a single prepayment up to 10% of the outstanding principal and interest made within 30 days following each anniversary date
  • After 5 years, on payments made within 30 days following reset date

Debt Servicing

  • None required (up to 55% LTV for approved CHIP amount).

Documentation Requirements

  • Valid and adequate fire insurance.
  • Property tax statement (current year or deferred property tax statement).
  • Two pieces of valid identification.
  • Power of Attorney and Power of Attorney Identification (if applicable).
  • Statements for any secured debt.


  • Not in a traditional sense, but refinancing available with fees waived.


  • Required (approximately $175 - $400 for most properties).

Independent Legal Advice

  • Required approximately $300 - $600.†

Property Taxes

  • Must be up-to-date (can be paid out of the mortgage proceeds).

†Additional legal costs may apply if additional legal work is required (eg. title issues).

Got Questions?
We are here to answer them. 
The Difference Between Home Equity Loans and Reverse Mortgages

Regardless of rising home prices in Canada, many Canadians still do not automatically think of drawing from their home equity during tough financial times. In certain parts of Canada, downsizing is beginning to be a lot harder than before, especially if you want to continue living in particular neighbourhoods. Aging Canadians enjoy the comfort of staying in their own homes, but with the cost of living and the cost of maintaining the home (via renovations or retrofitting to age in place), it is getting a lot harder for them to sustain and maintain their lifestyle.


A home equity loan is becoming a more prevalent product and almost a necessary tool for many aging Canadians. In fact, some Canadian retires even incorporate home equity loans into their retirement planning, so as to enable them to live a financially independent retirement. For some people, gone are the days when savings for retirement would actually be sufficient. In a 2013 survey conducted for the Investor Education Fund by the Brondesbury Group, 1,500 Canadians over the age of 50 were interviewed online. Half of the households surveyed felt that they would deplete their retirement savings within the first decade of retirement. For years, Canadians have been underestimating the amount they would need to save for retirement. Increasing life expectancy has a lot to do with this.


Healthcare advancements have been a major contributor as to why, in Canada, for the first time, the number of seniors aged 65 and older exceeded the number of children aged 0 to 14. The aging Canadian demographic is seeing its longest life expectancy ever and the need for financial assistance geared towards this growing demographic have never been more prevalent than it is today.

Myths about Reverse Mortgages

Click on flyer to read:

reverse mortgage canada calculator, how does a reverse mortgage work in canada,  chip reverse mortgage rates, reverse mortgage questions, reverse mortgage canada pros and cons, what is a reverse mortgage, what is reverse mortgage and how does it work, reverse mortgage advice, reverse mortgage broker, Reverse mortgage lender, seniors lending, reverse mortgage good idea, home equity, explain reverse mortgage, reverse mortgage faqs, best reverse mortgage, truth about reverse mortgage, reverse mortgage lender, advice, eligibility reverse mortgage, credit on equity, home equity loan senior, chip reverse mortgage rates
Still not sure if a Reverse Mortgage is for you? We'll send you a FREE guide that will answer all your questions and more.
Its written by Financial Experts, and will tell you the good, the bad, and the ugly!

Customer Stories:

"My mortgage broker told me that CHIP could be used to help me purchase the new townhouse I wanted. With a CHIP Reverse Mortgage, my broker explained, the purchase price of the new house can consist of the down payment (pro­ceeds of the sale) and the reverse mortgage. 
With CHIP, I was able to afford the townhouse I wanted in my desired 
neighbourhood and still have some money left just in case. "







*By entering your e-mail address you accept the terms and conditions.