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Mortgage Squad Advisors
Reverse Mortgage · 55+

55 or older? 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 Old Age Security or Guaranteed Income Supplement. We compare CHIP (HomeEquity Bank) and PATH (Equitable Bank) so you choose the right one.

Age 55+Up to 55% of home valueTax-free cashNo monthly paymentsNever owe more than home valueDoesn't affect OAS or GIS
5-star rated| FSRA #13737| 5-min pre-qualification

Written by the Mortgage Squad Advisors Editorial Team · Reviewed by the Principal Broker, FSRA #13737 · Updated June 2026

55 or older? Own your home?
Stay in your home. Get tax-free cash.
A reverse mortgage from CHIP or Equitable Bank lets you turn home equity into cash — with no monthly payments. You only pay it back when you sell or move.
Your age72
Tax-free cash available
$360,000
~40% of $900K home value
Min age
55
Income req
None
Payments
$0
Get pre-approved Reverse calc
Maya · AI · 24/7
How does a reverse mortgage actually work?
5-star rated| FSRA #13737| 50+ langs

We work with HomeEquity Bank's CHIP and Equitable Bank's PATH. Both are regulated, both have independent legal advice required, and both protect your home equity guarantee. We model both for your situation.

What you get

Why Canadians choose Mortgage Squad Advisors.

Tax-free cash from your home equity
No monthly payments required (interest accrues, repaid on sale)
Stay in your home — no obligation to sell
Take a lump sum, monthly income, or a combination
Up to 55% of appraised value (depending on age + property type)
Independent legal advice required (your protection)
No-Negative-Equity Guarantee in both major Canadian programs
Doesn't affect OAS or GIS
Instant check · no credit pull

How much could a reverse mortgage free up?

No payments required; the amount grows with your age and home value (CHIP/PATH style).

Your age70
5590
$270,000
Estimated tax-free payout
30%
Up to (% of home value)
$0 (interest accrues)
Monthly payment required
Estimates only — a licensed advisor confirms your file. FSRA #13737.

Or ask Maya directly:

Do I qualify for a reverse mortgage?What documents will I need?How fast can this close?
Maya · 24/7 AI advisor

Question about reverse mortgage? Maya answers instantly in 50+ languages.

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How it works

Three simple steps, no pressure.

1

Eligibility Check

Both spouses must be 55+. Property must be a principal residence in good condition.

2

Choose The Program

CHIP (HomeEquity Bank) vs PATH (Equitable Bank). We model both — the right one depends on age, property, and how you'll use the funds.

3

Independent Legal + Funding

You meet your lawyer (mandatory). Funds disburse in 2-4 weeks.

Run the math first

How does a reverse mortgage actually work in Canada?

A reverse mortgage lets a homeowner aged 55 or older convert part of their home equity into cash without selling and without making monthly payments. Depending on your age, your home, and its location, you can typically access up to about 55% of the appraised value — generally, the older you are, the higher the percentage. You can take the money as a lump sum, as steady monthly income, or a mix of both, and it arrives tax-free.

The key difference from a regular mortgage is that you make no payments. Instead, interest accrues and compounds onto the balance over time. The loan is repaid only when you sell, permanently move out, or pass away — usually from the proceeds of the home's eventual sale. You keep title and continue living in your home, as long as you maintain it, pay your property taxes, and keep it insured. There's no requirement to ever sell while you live there.

CHIP or PATH — which Canadian reverse mortgage is right for me?

Canada has two main reverse mortgage programs, and we model both against your situation rather than steering you to one. CHIP, from HomeEquity Bank, is the longest-established program, with the widest property and location coverage and several term and rate options. PATH, from Equitable Bank, is newer and often competitive on rate and on how much equity it will advance for younger qualifying borrowers in major urban markets.

The right choice depends on your age, your property type and city, how much you need to borrow, and whether you want a lump sum or ongoing income. A difference of a fraction of a percent compounds meaningfully over a 10- or 15-year horizon, so the comparison genuinely matters. As an FSRA-licensed brokerage (#13737), we lay both offers side by side, disclose every fee, and explain the tradeoffs in plain language — in any of 50+ languages — so you decide with no pressure.

Will my children inherit a debt? Understanding the No-Negative-Equity Guarantee

This is the question we hear most, and the answer is reassuring. Both CHIP and PATH include a No-Negative-Equity Guarantee: as long as you've met your obligations (kept up property taxes, insurance, and home maintenance), your estate will never owe more than the fair market value of the home at the time it's sold. If the balance has grown beyond the sale price, the lender absorbs the shortfall — not your heirs.

That means your children are never on the hook for a debt larger than the house. When the time comes, they have options: repay the reverse mortgage from the estate and keep the home, refinance it into a conventional mortgage, or sell and keep whatever equity remains after the balance is paid. Any equity left over belongs to your estate. We make sure you understand exactly how this protection works before you sign anything.

Does a reverse mortgage affect my OAS or GIS?

No — and for many retirees this is one of the biggest advantages. The money you receive from a reverse mortgage is loan proceeds, not income. Because it isn't taxable income, it doesn't show up on your tax return, doesn't push you into a higher tax bracket, and doesn't count against income-tested benefits like Old Age Security (OAS) or the Guaranteed Income Supplement (GIS).

Compare that with cashing out an RRSP or RRIF, which adds to your taxable income and can claw back those very benefits. A reverse mortgage lets you draw on your home's value without that ripple effect. If you take the funds as monthly income, you create a steady, tax-free cash flow that supplements your pension without touching your government benefits. We'll always recommend you confirm the details with your accountant, but the principle is well established and it's a meaningful planning advantage for income-tested retirees.

Is a reverse mortgage the right choice — or should I consider a HELOC or downsizing?

We'll be honest with you, because this is a long-term decision. The main tradeoff is that interest compounds and erodes your equity over time — since you make no payments, the balance grows, and the longer you hold it the less equity remains for you or your estate. Rates are also higher than a conventional mortgage. A reverse mortgage is usually the right fit when you're 55+, want to stay in your home long-term, and either can't comfortably qualify for or service the payments on a HELOC.

If you have reliable income and want to minimize interest cost, a HELOC or a refinance may be cheaper. If your home no longer suits you, downsizing frees equity outright with no accruing interest. Independent legal advice is mandatory on every reverse mortgage in Canada — your protection, and ours. We'll walk you through all the options, disclose every fee, and never pressure you toward the one that pays us best.

FAQ

Common questions, answered.

Don’t see yours? Ask Maya — instant answer, any time.

How is a reverse mortgage different from a HELOC?
HELOC: monthly interest payments, can be reduced/revoked, qualification on income. Reverse: no payments, can't be revoked, qualification primarily on age + equity.
What's the rate?
5.99% to 8.99% depending on program and term. Higher than a regular mortgage, but no monthly payments — interest compounds onto the balance.
Will my heirs lose the home?
No. When you sell or pass on, the loan is repaid from the sale proceeds. The No-Negative-Equity Guarantee ensures heirs never owe more than the home is worth.
Does it affect my OAS or GIS?
No. Reverse mortgage proceeds are loan funds, not income — so they don't affect OAS, GIS, 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+?
Yes — both names on title must be 55+. If only one spouse is, you typically wait until both qualify, or use a HELOC alternative.

Related products

Reverse mortgage vs HELOCReverse mortgage calculatorHELOCRefinance

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5 Best Ways to Use Your Home Equity in Canada, Ranked by Cost (2026)

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