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How Does a Reverse Mortgage Work in Canada

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

  1. 1


    Find out how much money you can get with a free estimate

  2. 2


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

  3. 3


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

  4. 4


    There are no monthly mortgage payments. The full amount becomes due when you are no longer in 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
  • The condition of your home
  • Your home equity

Find out how much money you can get!

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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.

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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.

*Conditions apply

What is CHIP?

How Reverse Mortgages Work

A CHIP Reverse Mortgage is a home equity loan available exclusively to Canadian homeowners 55 or older.

Learn More

Reverse Mortgage Videos

Reverse Mortgage Videos

Watch these videos from HomeEquity Bank and learn more about CHIP Reverse Mortgage

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