CHIP Reverse Mortgage FAQs
How much money can I get from a Chip Reverse Mortgage?
The amount you are eligible to receive depends on the age of the youngest applicant, the value of your home, and the type and location of your property.*
Do I have to make payments?
No, there are no mortgage payments required until you choose to move, or sell your home. You do have the option to make advance interest payments to help reduce the amount owing at the end of your reverse mortgage.*
Can I lose my home?
You will remain the owner of your home. We will never ask you to move or sell, provided you: pay your property taxes and home insurance, and keep your property well-maintained.
How does a reverse mortgage compare to a home equity line of credit?
A home equity line of credit is a good option for some people. It requires you to make regular payments. Before getting one, you will also need to qualify based on your income and credit history. You may also have to requalify as time goes on.
What if I already have a mortgage?
We will first pay off your mortgage, along with any other secured debt, and then giving you the remaining proceeds.
Do I keep the equity left in the home?
Yes! In our 30 years of experience, over 99% of homeowners have money left over when their CHIP Reverse Mortgage is repaid. And over average, the amount left over is more than 50% of the value of the home. This is due to the conservative limit (up to 55%*) we put on the amount that is made available to you; and the fact that most homes continue to increase in value.
What about downsizing?
Downsizing is certainly an option but expense can really add up with renovations, commissions, legal fees and land transfer taxes. Often you have to move away from the neighbourhood you love in order to purchase a home that will leave you with some extra cash for retirement.
Will my government benefits be affected?
No, CHIP will not affect any government you may receive, such as Old Age Security (OAS), Canada Pension Plan (CPP), or Guaranteed Income Supplement (GIS).
How to qualify
Exclusively for Canadian homeowners 55 and over
- All applicants area at least 55 years old
- Your home is your principal residence
- Any loans secured by your home (e.g. mortgage or home equity line of credit) must be less than funds available from CHIP.