How Does a Reverse Mortgage Work in Canada

Access up to 55% of the Value of Your Home – the Process is Easy!



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Our consultants and specialist will contact you to verify your information and answer question.



Receive the money you need in one lump sum or multiple installments



There are no monthly mortgage payments. The full amount becomes due when you are no longer in the home.

How Does a Reverse Mortgage Work?

A reverse mortgage works by offering a safe solution for Canadian homeowners age 55+ to access their home equity and turn it into tax-free cash without the requirement of monthly mortgage payments. Unlike a traditional mortgage, with the reverse mortgage, you will not need to make any principal or interest payments until you and your spouse leave the home.

What is a Reverse Mortgage?

A reverse mortgage is a loan secured against the value of your home. It is designed exclusively for homeowners aged 55 years and older. It enables you to convert up to 55% of your home’s value into tax-free cash. The funds from a reverse mortgage can be used for whatever you desire; to cover monthly expenses, renovate your home, pay-off debt or travel – the choice is yours! With a reverse mortgage, you maintain ownership of your home and there are no monthly mortgage payments required. Repayment of the loan is only required once you chose to move or sell. We guarantee that the amount you eventually repay will never exceed the fair market value of your home. And if your home goes up in value, the appreciation is all yours. You are simply required to maintain your property and pay the taxes and insurance.

Reverse Mortgage Eligibility & Qualifications

To be considered eligible for a Reverse Mortgage in Canada, you must be:

  • A Canadian homeowner
  • Age 55 or older (if you have a spouse, both of you must be at least 55 years old to be eligible)

To qualify for a Reverse Mortgage in Canada, the following factors are assessed:

  • You and your spouse’s age
  • Location of your home
  • Type of home (e.g. detached, condo, townhouse etc.)
  • Appraised value of your home
  • Appraised value of your home
  • The condition of your home
  • Your home equity

In 2 minutes find out how you can qualify for tax-free cash with the CHIP Reverse Mortgage® and get your FREE guide today!

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Turn Home Equity into Cash

There’s no retirement like home. If you’re like most Canadian homeowners 55 or over, much of what you own fits into one of two categories – the equity in your home and the money you have saved. Chances are, the value of your home has grown over the years and makes up a good portion of your net worth. While having a home that has built value is a positive, you typically can’t spend that value unless you sell your home. A Reverse Mortgage allows you to turn some of your home equity into tax-free cash. You can get up to 55%* of its value. It also ensures you have access to that cash whenever you want it. You’ll maintain ownership and control of your home without the obligation to make regular mortgage payments until you move or sell.

CHIP Reverse Mortgage

You’re in Control with a Reverse Mortgage

You worked hard to become a homeowner, and it’s important to us that we keep it that way. With a Canadian Reverse Mortgage, you always maintain control of your home*. In other words, you will never be forced to sell or move as a result of changing home values or earning power (remember, there are no monthly mortgage payments). And we guarantee the amount that you or your estate eventually has to repay will never exceed the fair market value of your home at the time it is sold*. There’s no reason your home should ever be a burden to you or your family.

If your home goes up in value, the appreciation is all yours. Simply maintain your property and pay the taxes and insurance. When you retire, you shouldn’t have to give up the home you love.

Find out how much tax-free cash you could qualify for!
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Your Money, Your Way

The CHIP Reverse Mortgage is structured around you. You can choose to receive your tax-free money over a longer period of time or all together. It’s up to you. If at any time you want to repay the principal and interest in full, or switch to paying interest on an annual or monthly basis, you can do that too.

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By Canadians, For Canadians

As a federally regulated Schedule 1 bank, HomeEquity Bank meets the highest safety and security standards. For over 30 years, we’ve helped Canadian homeowners 55 and over retire freely in their own home. That’s why it’s no surprise that HomeEquity Bank is Canada’s leading provider of reverse mortgages.

FAQs on How Reverse Mortgages Work in Canada:

How much can you borrow with Reverse Mortgage?

The CHIP Reverse Mortgage allows you to borrow up to 55%* of your home’s value. The total amount that can be borrowed is dependent on your age, the location of your home, the type of home, the condition of your home and the appraised value of your home.

How much equity is needed to get a Reverse Mortgage?

Home equity is derived by subtracting any outstanding secured debts against the home from the appraised value of your home. The total amount that you can borrow must be greater than or equal to any outstanding secured debt on the home. To get a reverse mortgage, your home must be valued at a minimum of $200,000.

How to get out of a Reverse Mortgage?

You can get out of a reverse mortgage at any time by paying off your reverse mortgage amount plus interest accrued. However, you may be charged a fee to pay off your reverse mortgage early. You do not need to pay anything toward your reverse mortgage unless you chose to leave your home.

How to apply for a Reverse Mortgage?

To start your reverse mortgage application simply complete our free estimate form or give us a call at

*Conditions apply

Turn your home equity into tax-free cashflow. No monthly payments!