A reverse mortgage is a government-insured loan available to Canadian homeowners aged 55 or older. It allows you to borrow money against the equity in your home without having to sell it or make monthly payments. Unlike a traditional mortgage, the loan balance grows over time and is typically repaid only when you move out permanently, sell your home, or pass away. The most common reverse mortgage in Canada is offered by HomeEquity Bank under the CHIP program.

With a reverse mortgage, you receive funds as a lump sum, monthly payments, or a line of credit, based on your home’s appraised value and your age. You don’t make monthly payments; instead, interest accumulates on the loan balance over time. The loan must be repaid when you sell your home, permanently move out, or die. Since reverse mortgages are “non-recourse” loans, you or your heirs will never owe more than the home’s value at repayment.

To qualify, you must be at least 55 years old, own your home outright or have significant equity, and your property must have an appraised value of at least $150,000. Other eligibility factors include property type and location.

The CHIP reverse mortgage is the most common reverse mortgage product in Canada, offered by HomeEquity Bank. It allows you to access up to 55% of your home’s appraised value without monthly payments. We guide you through the process, explaining interest rates and repayment terms clearly.

Borrowing limits typically range from 10% to 55% of your home’s appraised value, influenced by your age, location, and property type. Generally, the older you are, the larger the amount you can access.

Interest accrues on your loan balance and compounds over time, as no payments are required while you live in the home. Reverse mortgage interest rates are usually about 2% higher than traditional mortgage rates due to the nature of the loan. We help you understand how interest impacts your loan over time.

Yes. Common fees include appraisal fees, legal fees, lender fees, and mortgage insurance. At Reverse Mortgage Centre, we provide full transparency upfront so you know exactly what to expect — no hidden charges.

It can. Some benefits, such as Old Age Security (OAS) and the Guaranteed Income Supplement (GIS), may be affected depending on how you receive and use the funds. Our advisors review these impacts thoroughly during your free assessment to ensure you’re fully informed.

The loan becomes due when you sell your home, move out permanently, or pass away. Typically, your home is sold to repay the loan balance, and any remaining equity goes to you or your heirs.

Yes, early repayment is allowed, though penalties may apply that differ from those on conventional mortgages. We explain all repayment terms clearly so you understand your options.

Reverse mortgages are regulated and insured by the Canadian government, offering protections for homeowners. At Reverse Mortgage Centre, we help you understand all risks and benefits so you can decide confidently.

Reverse mortgages in Canada are “non-recourse” loans, meaning you or your heirs will never owe more than the home’s market value at the time of repayment, even if the property value falls.

Approval generally takes 2 to 4 weeks, depending on appraisal scheduling and documentation. Our team works efficiently to guide you through every step.

Yes. The reverse mortgage funds will first be used to pay off your existing mortgage, and you must have sufficient equity remaining to qualify for a reverse mortgage.

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.

A home equity line of credit is a good option for some people. However, it requires you to make regular payments. Before getting one, you will also have to qualify based on your income and credit history. You may also have to requalify as time goes on.

In our many years of experience, over 99% of homeowners have money left over when their Reverse Mortgage is repaid. And on average, the amount left over is more than 50% of the value of the home. The reasons for this remaining equity are: The conservative limit (up to 55%*) we put on the amount that is made available to you; The fact that most homes continue to increase in value.

Downsizing is certainly an option but expenses 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.