Reverse Mortgages

Reverse Mortgages

Ownership & Estate Protection | Interest Rates and Set-up Costs

Homeowners can access up to 40% of the current appraised value of their home based on the homeowner’s age and that of their spouse, and on the location and type of home. Funds are not taxed as income.

Funds can be received in a lump sum or over time. Most clients take a lump sum.
Any outstanding loans secured by the home must be retired with the CHIP Home Income Plan funds. Call 647-267-6338 today.


No regular payments are required.
The full amount only becomes due when the home is sold, or if both homeowners move out.
Clients have the option to repay the principal and interest in full at any time. Upon repayment, an interest rate differential may apply (maximum of three months’ interest).
A prepayment amount will apply on repayments within the first three years. This may be waived or reduced in the event of death or a move into a long-term care facility or retirement residence.


Available to homeowners 60 and older on their principal residence.
Location and type of home must qualify.
No medical, income or credit qualifications.

Ownership & Estate Protection

With a CHIP reverse mortgage, title remains in the homeowner’s name and they will never be asked to move or sell to repay their Home Income Plan.
The homeowner is responsible for up-to-date payment of property taxes, fire insurance and condominium/maintenance fees, and maintenance of the property.

Estate protection

In more than 20 years of our experience, over 99% of homeowners have equity remaining upon repayment.
The amount to be repaid is guaranteed not to exceed the fair market value of the home at the time it is sold, protecting the homeowner or the estate.

CHIP’s conservative lending practices combined with typical home appreciation result in clients maintaining, on average, at least 50% of their home equity at the time of repayment. In this illustration, home equity appreciates by 5.6% annually (20-year national house appreciation average Source: CREA 2007) with a CHIP Home Income Plan initial interest rate of 8% with long-term discounts applied. These assumptions are not indicative of future market performance or interest rates. Actual results may vary.

 Interest Rates and Set-up Costs

Clients may choose a fixed rate with a variety of terms, or a variable rate. Interest is added to the outstanding balance and is compounded semi-annually.
Interest rate discounts are available that significantly lower the cost of borrowing.
Set-up costs include a home appraisal, independent legal advice and legal & closing costs.

Click here to contact us and set an appointment for current interest rates and set-up costs.

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