CHIP Reverse Mortgage in the GTA

A CHIP Reverse Mortgage lets Canadian homeowners aged 55 and older access up to 55% of their home's value as tax-free cash, with no monthly mortgage payments required. You keep the title to your home, and the loan is repaid when you sell or move. It is issued by HomeEquity Bank and arranged through licensed mortgage brokers.

If you have lived in your Richmond Hill, Markham or Vaughan home for twenty or thirty years, a large amount of your net worth is sitting in the walls. Most GTA homeowners in their late fifties and sixties are, on paper, wealthy — and short on cash. A reverse mortgage is one way to change that without selling the house or leaving the neighbourhood.

It is not the right answer for everyone, and we will tell you when it isn't. Below is what it actually does, who qualifies, what it costs, and how it compares to the alternatives.

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What is a CHIP Reverse Mortgage?

CHIP is Canada's longest-running reverse mortgage, offered by HomeEquity Bank, a federally regulated Schedule I bank. Caliber Mortgage Inc. is a licensed brokerage (FSRA #13368) — we don't issue the mortgage, we help you decide whether it fits and arrange it if it does.

A conventional mortgage takes money from you every month and builds your equity. A reverse mortgage does the opposite: it gives you money out of the equity you already have, and the balance grows over time instead of shrinking. Nothing is due until you sell the home, move out permanently, or the last borrower passes away.

You keep the title. Ownership stays in your name — the bank does not own your house.
The money is tax-free. It's a loan, not income, so it doesn't affect OAS or GIS.
No monthly payments. You can make voluntary payments, but nothing is required.
Take it as a lump sum or over time. Scheduled advances keep the interest cost down.
Negative equity guarantee. You or your estate will never owe more than the fair market value of the home at the time it's sold, provided payments like taxes and insurance have been kept up.

Do you qualify?

To qualify for a CHIP Reverse Mortgage you must be 55 or older — and so must everyone on title. The home must be your primary residence in Canada, lived in at least six months a year, and generally appraised at $250,000 or more. Income and credit score are not qualifying factors. 48 words

Age: 55+ for every registered owner. If one spouse is 52, you wait.
Property type: most homes qualify — detached, semi, townhouse, condo.
Occupancy: primary residence only. Rentals and cottages don't qualify.
Existing mortgage: not a barrier, but it must be paid out from the proceeds. You cannot carry both.
Location: available across Canada. Urban GTA properties typically qualify for more than rural ones.

How much can you access?

Up to 55% of the appraised value of your home. Where you land in that range depends on your age, the property's location and condition, and the type of home. Older applicants and stronger urban markets sit toward the top end — which is why York Region homeowners often qualify for more than the national average.

On a $1.4M Richmond Hill home with no existing mortgage, that's a meaningful number. We'll run your actual figure in the first conversation — no appraisal or commitment needed to get an estimate.

What it costs — the honest version

Reverse mortgage rates are higher than a conventional mortgage or a HELOC. That's the trade-off for requiring no payments and no income qualification, and any broker who glosses over it isn't doing their job.

Interest rate: varies by term. Interest compounds on the growing balance rather than being paid down monthly.
Set-up costs: appraisal, independent legal advice, and a one-time administrative fee.
Prepayment: penalties may apply if you repay in full within the first five years. They're typically waived on death, and reduced when moving into long-term care.
The equity effect: a growing balance means less equity left for your estate. For many families that's a reasonable trade for staying in the home — but it should be a decision you make with your family, not around them.