CHIP Reverse Mortgage (HomeEquity Bank) Review 2026Apply Now Check if I Qualify ↓
Written and analysed by Smarter Loans Editorial Team · Reviewed by Vlad Sherbatov
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Four questions checked against CHIP Reverse Mortgage (HomeEquity Bank)'s published criteria, per product. No application started.
Fifty-five is CHIP's number, for every name on title. The house must be your primary residence, appraised at $250,000 or better, and nothing is owed monthly while you stay in it.
No monthly payments are required, but the home carries obligations of its own: property taxes, insurance and maintenance must stay up to date for the whole life of the loan. Fall behind on those and the arrangement is at risk.
The age test applies to you and your spouse together. One titleholder at 58 and another at 52 does not qualify yet, because 55 is the floor for both names, not the older one.
1 review from borrowers who used CHIP Reverse Mortgage (HomeEquity Bank). Each is submitted by a verified borrower and moderated for authenticity; it renders as written, positive or not, and lenders cannot remove it.
We are extremely blessed to have come across the CHIP reverse mortgage. It has not only relieved our anxiety but also gave us peace of mind during a tough time.
The CHIP Reverse Mortgage allows Canadian homeowners aged 55 and older to access up to 55 percent of their home’s appraised value in tax-free cash without having to sell or move. Unlike a traditional mortgage, there are no monthly payments required, and the loan is repaid only when the home is sold, the homeowner moves, or the last homeowner passes away.
The CHIP Reverse Mortgage provides either a lump sum or scheduled cash advances based on your home equity. Interest accumulates on the loan, but there are no required monthly payments. The loan is repaid when the home is sold or when the last homeowner leaves the property. On average, CHIP customers retain over 50 percent of their home’s value even after repayment.
The amount you qualify for depends on factors such as your age, home value, location, and type of home (detached house, condo, townhouse, etc.). Your eligibility is assessed individually, and on average, homeowners can access up to 55 percent of their home’s value while still retaining significant equity.
The funds from a CHIP Reverse Mortgage can be used however you like, whether it’s for paying off debts, covering medical expenses, funding home renovations, helping children or grandchildren financially, or simply maintaining your lifestyle. The loan is tax-free, and there are no restrictions on how you use the money.
CHIP Reverse Mortgage rates are available in fixed and variable options. A fixed rate offers stability over a set period (e.g., one, three, or five years), while a variable rate fluctuates with the Bank of Canada’s prime rate. While reverse mortgage rates are slightly higher than traditional mortgage rates, they provide the benefit of no required monthly payments.
Yes. With a CHIP Reverse Mortgage, you remain the full owner of your home. The loan is secured against your property, but ownership remains in your name, allowing you to continue living in your home for as long as you choose.
The CHIP Reverse Mortgage includes a No Negative Equity Guarantee, meaning that you or your heirs will never owe more than the fair market value of the home at the time of sale. As long as property taxes and insurance are maintained, you are protected even if the home’s value declines.
You are not required to make monthly mortgage payments. The loan is repaid when you sell your home, move out permanently, or upon the passing of the last homeowner. At that time, the proceeds from the home sale are used to cover the loan, and any remaining equity belongs to you or your heirs.
Since homeowners retain ownership of their home, they can still pass it down to their heirs. If the home’s value exceeds the loan balance at the time of sale, the remaining funds go to the estate.
Like a traditional mortgage, a CHIP Reverse Mortgage has standard costs, including an appraisal fee (to determine home value), legal fees (for independent legal advice), and an administrative fee (to cover processing costs). These fees are typically deducted from the loan proceeds.
Applying for a CHIP Reverse Mortgage is a simple process that can be completed from the comfort of your home. It begins with speaking to a CHIP Reverse Mortgage specialist to determine your eligibility. Once confirmed, you will complete an application and have your home appraised to assess its value. After that, you will review the loan offer with independent legal advice to ensure you fully understand the terms. Once everything is finalized, you will receive your tax-free cash, either as a lump sum or in scheduled payments.
