HomeEquity Bank CHIP Reverse Mortgage, Explained
HomeEquity Bank is the maker of the CHIP Reverse Mortgage, Canada’s best-known way for homeowners 55 and older to turn home equity into tax-free cash without selling or making regular payments. Here’s how it actually works, who it’s for, and how we make sure CHIP is the right fit — or find you a better one.
How the CHIP Reverse Mortgage works
A reverse mortgage flips the usual mortgage model. Instead of making payments to build equity, you unlock equity you’ve already built:
- You must be 55 or older (all owners on title, if there’s more than one), and the home is generally your primary residence.
- You borrow a portion of your home’s value — commonly up to roughly 55%, depending on your age, the property, and its location.
- No regular mortgage payments are required. Interest accrues over time and is settled when the loan is repaid — though you’re free to make voluntary payments if you want to slow the growth.
- The money is tax-free and doesn’t reduce Old Age Security or Guaranteed Income Supplement benefits.
- You keep title to your home and can stay in it for as long as you like, subject to normal obligations like keeping property taxes, insurance and maintenance up to date.
- The loan is repaid from the proceeds when you sell, move out permanently, or pass away — your estate keeps whatever equity remains.
Who is HomeEquity Bank?
HomeEquity Bank is a federally regulated Schedule I bank and the company behind the CHIP Reverse Mortgage — the product that effectively created the reverse mortgage category in Canada and remains the most recognized name in the space. HomeEquity Bank is owned by the Ontario Teachers’ Pension Plan. As an independent broker, we can place your file with HomeEquity Bank or weigh it against other reverse mortgage lenders, so you’re not just taking the first quote you’re offered.
HomeEquity Bank’s reverse mortgage line-up
| Product | What it is | Best for |
|---|---|---|
| CHIP Reverse Mortgage | The flagship product — a lump sum (or scheduled advances) against your home equity, no required payments | Homeowners who want a straightforward, one-time or planned access to equity |
| CHIP Max | A version of CHIP designed to unlock a larger share of your home’s value for eligible homeowners | Homeowners who need to access more equity than a standard CHIP plan allows |
| Income Advantage | A readvanceable reverse mortgage — draw funds as you need them, rather than all at once | Homeowners who want ongoing access to equity over time, similar in feel to a line of credit |
Is a reverse mortgage right for you?
A reverse mortgage is a powerful tool for the right situation — and not the only way to access home equity. Here’s how the trade-offs stack up:
- Upside: no required monthly payments, tax-free cash flow, no need to qualify on income the way a traditional mortgage or HELOC requires, and you stay in your home.
- Trade-off: interest accrues on the balance over time since you’re not making regular payments, which reduces the equity left for you or your estate down the road.
- Vs. a HELOC: a home equity line of credit usually charges a lower rate but requires regular interest payments and income/credit qualification. A reverse mortgage has no payment requirement and easier qualifying (age and home equity matter more than income), but typically carries a higher rate to reflect that.
- Good fit for: retirees who are equity-rich but cash-flow-tight, homeowners who want to age in place, or anyone who wants to supplement retirement income without selling or taking on monthly payments.
How a Calgary mortgage broker helps with a reverse mortgage
Reverse mortgages aren’t one-size-fits-all, and CHIP isn’t the only option. Here’s what we bring to the table:
- We compare CHIP against Bloom Financial and Equitable Bank’s reverse mortgage products so you see more than one quote.
- We walk through whether a reverse mortgage, a HELOC, or a conventional refinance actually solves what you need.
- We explain exactly how the balance grows over time and what it means for your estate, in plain language.
- It’s free, with no obligation, and we coordinate with the independent legal advice a reverse mortgage requires.
Mortgage Application
See if a CHIP Reverse Mortgage — or a better fit — makes sense for you
- 2-minute form
- No credit check to start
- Bank-level encryption
- No obligation
Frequently asked questions
Do I make payments on a reverse mortgage?
Do I keep ownership of my home?
How much can I borrow with a CHIP Reverse Mortgage?
Is the money from a reverse mortgage taxable?
What happens to a reverse mortgage when I sell or pass away?
Curious if a reverse mortgage fits your plans?
We’ll walk you through how CHIP works, compare it against other reverse mortgage lenders and a HELOC, and help you decide with confidence. Apply online in about two minutes, or book a no-pressure discovery call.
Free · No credit check to start · No obligationThis article is general information, not financial, mortgage or legal advice. Lender products, rates, features and eligibility vary, are subject to change and depend on lender approval. A reverse mortgage reduces the equity available to you or your estate over time; independent legal advice is required before signing. HomeEquity Bank and CHIP are not affiliated with Mortgages for Less and no endorsement is implied. Please speak with a licensed mortgage professional about your specific circumstances. Mortgages for Less with INDI Mortgage.