Chip Reverse Mortgage

As you enter retirement, financial stability may be top of mind. Whether you’re looking to cover unexpected expenses, help family members, or simply enhance your lifestyle, having access to additional income can make a difference. For Canadian homeowners aged 55 and better, the CHIP Reverse Mortgage by HomeEquity Bank provides a smart, flexible way to access tax-free cash from your home’s equity.

How Does the CHIP Reverse Mortgage Work?

The CHIP Reverse Mortgage allows you to unlock up to 55%¹ of the value of your home without the need to sell or move and unlike a traditional loan, there are no monthly mortgage payments required.

Three Ways You Can Use Your Home Equity

1. Protect Your Retirement Savings
   Many retirees rely on their RRSPs, TFSAs, or other savings to manage expenses. However, withdrawing large amounts can lead to hefty taxes and diminish long-term retirement funds.  With the CHIP Reverse Mortgage, you can access tax-free cash from your home equity, preserving your savings and allowing your investments to continue growing.

• Manage Debt and Unexpected Costs
  Whether it’s high-interest credit card debt or unplanned medical expenses, managing financial surprises in retirement can be stressful. The CHIP Reverse Mortgage gives you the flexibility to pay off existing debts by consolidating the debt or handle unforeseen costs without affecting your monthly cashflow or budget that you may have set for yourself.

• Live Retirement Your Way
  Retirement is your time to enjoy life. Whether it’s traveling, renovating your home, or helping your children and grandchildren, the CHIP Reverse Mortgage gives you the financial freedom to make the most of your retirement – on your terms.

Why Choose the CHIP Reverse Mortgage?

• No Monthly Payments Required: Focus on enjoying retirement without worrying about monthly mortgage payments.
• Stay in Your Home: A common misconception about reverse mortgages is that the bank takes ownership of your home—but that’s not true. With the CHIP Reverse Mortgage, HomeEquity Bank provides tax-free cash based on your home’s value, while you remain the owner. You’re simply responsible for property taxes and upkeep. According to an Ipsos survey conducted on behalf of HomeEquity Bank, 93%² of Canadians want to age in place, staying in the home they love. With CHIP, you can access your home’s equity and enjoy retirement on your terms.

• Tax-Free Cash: Because you are unlocking home equity, the funds received from the CHIP Reverse Mortgage are not added to your taxable income and do not affect government benefits such as Old Age Security (OAS).
• No Negative Equity Guarantee:  The CHIP Reverse Mortgage has a No Negative Equity Guarantee³, which means that if you meet your property taxes and mortgage obligations, HomeEquity Bank guarantees that the amount owed on the due date will not exceed the fair market value of your home. If the house depreciates and the mortgage amount owing is more than the gross proceeds from the sale of the property, HomeEquity Bank covers the difference between the sale price and the loan amount.

Is the CHIP Reverse Mortgage Right for You?

If you want to enhance your retirement lifestyle while staying in the home, you love — without dipping into your savings — the CHIP Reverse Mortgage could be a potential solution for you. To explore how you can access tax-free cash through your home’s equity, contact your Dominion Lending Centres mortgage expert to learn more about the CHIP Reverse Mortgage.

¹Some conditions apply.

²Survey conducted by Ipsos on behalf of HomeEquity Bank April 12-16, 2022

³As long as you keep your property in good maintenance, pay your property taxes and property insurance and your property is not in default. The guarantee excludes administrative expenses and interest that has accumulated after the due date