Reverse mortgage for 55+:
unlock home equity, tax-free,
with no monthly payments.
Get up to 55% of your home’s value as a lump sum or monthly income. Stay in your home. The money you receive doesn’t affect OAS or GIS. We compare HomeEquity Bank’s CHIP and Equitable Bank’s reverse mortgage so you choose the right one.
Four reasons it’s the right
move — when it’s the right move.
We model both CHIP and Equitable Bank against your file and only recommend a reverse mortgage when it genuinely fits your situation.
Tax-free home equity
Reverse mortgage proceeds are loan funds, not income. They don't appear on your tax return, don't push you into a higher bracket, and won't affect income-tested benefits like OAS or GIS — confirmed by FCAC.
No monthly payments required
Interest accrues and compounds onto the balance over time. You make no payments during the life of the loan. The full amount is repaid from the sale proceeds when you sell, permanently move out, or pass away.
No-negative-equity guarantee
Both HomeEquity Bank (CHIP) and Equitable Bank guarantee your estate will never owe more than the fair market value of your home at sale — provided you meet the loan's obligations. Your heirs are never on the hook for a shortfall.
Doesn't affect OAS or GIS
Because reverse mortgage funds are a loan, not income, they don't count against your OAS or GIS — unlike cashing out an RRSP or RRIF, which adds to your taxable income and can trigger benefit clawbacks.
How a reverse mortgage
works in Canada.
Three steps from first conversation to funded.
We manage every lender touchpoint.
Eligibility Check
You and your spouse on title must generally be 55 or older. The property must be your principal residence and in good condition. We verify eligibility, review your home's appraised value, and confirm the maximum advance for your age and location.
Choose the Program
CHIP (HomeEquity Bank) vs Equitable Bank's reverse mortgage. We model both side by side — rate, advance amount, fees, and projected balance over 5, 10, and 15 years — so the right fit for your age, property, and how you'll use the funds is clear before you commit.
Independent Legal Advice + Funding
Your lender requires you to get independent legal advice before signing. We help coordinate the process. Funds typically disburse within a few weeks of approval — as a lump sum, monthly income, or a combination of both.
We can help across
many scenarios.
Tap any situation below to see how we approach it.
If you’re…You want supplemental income without selling or making payments
You want supplemental income without selling or making payments
A reverse mortgage structured as monthly draws converts your equity into a steady, tax-free cash flow that supplements CPP and OAS without any monthly obligation. The balance grows over time, repaid only when the home sells.
Model my monthly incomeIf you’re…You're worried the loan will eat all your home's equity
You're worried the loan will eat all your home's equity
How much equity remains depends on how much you borrow, how long you hold the loan, and your home's appreciation. We project the balance vs property value at multiple time horizons so you see exactly what your estate might look like.
See my equity projectionIf you’re…Your children are concerned about inheriting debt
Your children are concerned about inheriting debt
Both CHIP and Equitable Bank carry a no-negative-equity guarantee: your estate will never owe more than the fair market value of the home at sale, provided you kept up property taxes, insurance, and maintenance. Heirs can also repay the loan to keep the home.
Understand the guaranteeIf you’re…You rely on OAS or GIS and can't afford extra taxable income
You rely on OAS or GIS and can't afford extra taxable income
Unlike RRSP or RRIF withdrawals, reverse mortgage proceeds are a loan — they're not income, don't trigger clawbacks, and don't affect your GIS or OAS. They're also not taxable unless you invest the funds and earn income on them.
Protect my benefitsIf you’re…You have a small remaining mortgage you want to clear
You have a small remaining mortgage you want to clear
If an existing mortgage is on title, lenders typically require it to be paid off at closing — often from the reverse mortgage proceeds. This actually becomes an advantage: eliminating your monthly mortgage payment while converting remaining equity to cash.
Run my numbersIf you’re…You're deciding between a reverse mortgage and a HELOC
You're deciding between a reverse mortgage and a HELOC
A HELOC requires monthly interest payments, qualifies on income, and can be reduced or revoked. A reverse mortgage needs no payments, qualifies mainly on age and equity, and can't be called while you meet its obligations. We compare both for your file.
Compare both optionsCHIP vs Equitable Bank:
Canada’s two lenders compared.
We model both programs against your file — a fraction of a percent compounds meaningfully over a 10-year horizon.
| Feature | CHIP (HomeEquity Bank) | Equitable Bank |
|---|---|---|
| Established | 1986 — longest-running program | 2018 (PATH Home Plan) |
| Regulation | Federally regulated bank | Federally regulated bank |
| Max advance | Up to 55% of appraised value | Up to 55% of appraised value |
| No-negative-equity guarantee | Yes — excludes admin costs + interest accrued after due date² | Yes — subject to terms³ |
| Independent legal advice | Required | Required |
| Rate options | Fixed and variable, multiple terms | Competitive — can vary by age + property |
| Prepayment | Allowed with conditions | Allowed with conditions |
Illustrative only — maximum advance depends on age, property type, location and lender underwriting at the time of application. Try the reverse mortgage calculator.
Common questions,
clear answers.
Rates, heirs, OAS, HELOC comparisons — answered plainly so you decide with the full picture.
How is a reverse mortgage different from a HELOC?
A HELOC needs monthly (at least interest) payments, qualifies you on income and can be reduced or revoked by the lender. A reverse mortgage needs no payments, qualifies you mainly on age and equity, and can't be called while you meet its obligations. See reverse mortgage vs HELOC.
What's the rate?
Reverse-mortgage rates are higher than regular mortgage rates and vary by lender, program and term, so we quote current CHIP and Equitable Bank rates on your file rather than publish a number that can go stale. With no monthly payments, interest compounds onto the balance.
Will my heirs lose the home?
Not necessarily. When you sell or pass on, the loan is repaid, usually from the sale proceeds, and heirs can instead repay it to keep the home. The no-negative-equity guarantee means the estate won't owe more than the home's fair market value, provided the loan's obligations were met.
Does it affect my OAS or GIS?
No. Reverse mortgage proceeds are loan funds, not income, so they don't affect OAS or GIS¹ or your tax bracket.
Can I still leave the home to my kids?
Yes. Your kids inherit the home; they can pay off the reverse mortgage from the estate, refinance it into a regular mortgage, or sell.
Can I move?
Yes. The loan is repaid from sale proceeds when you do. Some programs are portable to a new principal residence.
What types of property qualify?
Detached, semi, townhouse, most condos. Rural and unique properties are case-by-case.
Do both spouses need to be 55+?
Generally yes: everyone on title usually needs to be 55 or older. If only one spouse is, you typically wait until both qualify, or use a HELOC alternative.
- ¹ Financial Consumer Agency of Canada — “Reverse mortgages” canada.ca (Accessed September 2026). Confirms reverse mortgage proceeds don’t affect OAS or GIS.
- ² HomeEquity Bank — “CHIP Reverse Mortgage” homeequitybank.ca (Accessed October 2026). No-negative-equity guarantee applies while the borrower meets obligations; excludes administrative expenses and interest accrued after due date.
- ³ Equitable Bank — “Reverse Mortgages” eqbank.ca (Accessed September 2026). No-negative-equity guarantee: you’ll never owe more than the fair market value of your home, subject to its terms.
We’ll try to beat your rate.
If we can’t, we pay you $500.¹
¹ Rate Beat: eligible Big-6 bank written offers only · same product, term & amount · $500 paid to you or your nominated charity at closing · conditions apply
Find a reverse mortgage specialist in your city
Reverse mortgage eligibility, rates, and maximum advance all depend on your property's location and appraised value. Our advisors know the local market and which lender gives the best offer for your neighbourhood.