Frequently Asked Questions

Will I still own my home with a Reverse Mortgage? / Will HomeEquity Bank own my home if I take a Reverse mortgage?

You will always maintain complete ownership of your home! When completing a Reverse Mortgage with CHIP you maintain complete ownership of your home and we will never force you to move from your home.

What happens if I outlive the Mortgage? / Can I lose my home because I lived longer than expected?

With a Reverse Mortgage, you remain as the owner and the bank never takes ownership of your home, provided you have met your mortgage obligations*. Your Mortgage only becomes due when you sell your home, move out of your home or eventually pass away. The CHIP Reverse Mortgage is a non-recourse loan, meaning that the borrower will never owe more than the home is worth. Your obligation is to ensure that you are paying your property taxes, home insurance and that your property is well maintained.

*Obligations include paying your property taxes, maintaining your property and paying your home insurance.

Am I disqualified if I already have a mortgage?

No, you are still eligible for a CHIP reverse mortgage. The process would be the same as if you were bringing that mortgage to a different lender. They would take your existing mortgage and replace it by transferring it to another lender. Any excess money left over would be yours.

An important distinction to understand is that your mortgage must be completely paid off with the amount of your reverse mortgage. For example, if you have a mortgage right now for $150,000 and you qualify for a reverse mortgage of $300,000, then you’d use half of that to pay off your mortgage. The rest is yours.

However, if you only qualified for $100,000 – not enough to pay off your current mortgage, we can discuss other options.

What affects the total amount that I can borrow?

There are three main factors that affect how much you’ll qualify for if you’re eligible for a reverse mortgage:

– Your age
– The value of the property
– The type of property

You can qualify for up to 55% of the value of your home, which is the maximum amount allowable for a reverse mortgage under Canadian law.

What a lot of people are surprised to learn is that, unlike most products banks offer, reverse mortgages are not impacted by your credit score. Instead, for you to qualify has much more to do with the value of your home.

It makes sense when you think about it, though. After all, you’re not paying anyone back. So even if you have a poor record of doing so, as long as your home has value, a lender will consider you for a reverse mortgage.

What are the fees associated with a Reverse Mortgage?

In addition to the interest charged on the money borrowed, a Reverse Mortgage will typically involve paying the following nominal fees:

Appraisal Fee: paid to an external property appraiser
Independent Legal Advice: paid to a lawyer/notary of your choice for independent legal advice
Closing Cost: fee collected by HomeEquity Bank, financed through the proceeds of the Reverse Mortgage

What if my home sells for less/more than what I owe on the Reverse Mortgage?

If your home depreciates in value and the Mortgage amount due is more than the sale price, HomeEquity Bank will cover the difference between the sale price and the Mortgage amount as long as you have met your obligations under the mortgage, including paying your property taxes, maintaining your property and paying your home insurance. This is HomeEquity Bank’s Negative Equity Guarantee. Our conservative lending practices ensure that you will never owe more than the fair market value of your home. In most cases, your home will appreciate in value. In fact, 99% of clients have money left over when their Mortgage is repaid.

What is the CHIP Reverse Mortgage?

reverse mortgage allows homeowners to borrow against their home’s equity while maintaining ownership and living in their home. A borrower can get up to 55% of the appraised value of their home in tax-free cash, but your actual amount is based on a few factors including your age (and the age of your spouse, if applicable), the value of your home, and the location and type of your home. Reverse mortgages require no monthly mortgage payments until the borrower moves, sells or no longer lives in the house.

How can you use the CHIP Program?

The money received from the reverse mortgage can be accessed in one lump sum or in planned advances – it’s your choice! If you have an existing mortgage or home equity line of credit, the funds received must first be used to pay off the existing loans secured by your home. The remaining cash can be used for whatever you like – here are some example of how customers of the CHIP Program have used their money:

  • Pay for home improvements or repairs
  • Cover your regular expenses
  • Pay for travel
  • Pay for healthcare expenses
  • Pay-off existing debts
  • Help your children with an early inheritance

Your Money, Your Way

The CHIP Reverse Mortgage is structured around you. You can choose to receive your tax-free money over a longer period of time or all together. It’s up to you. If at any time you want to repay the principal and interest in full, or switch to paying interest on an annual or monthly basis, you can do that too.

Let’s match your needs to the right Reverse Mortgage product for you!

Reverse Mortgage Products

CHIP Reverse Mortgage


Custom built for homeowners 55 and over, it enables you to access up to 55% of your home value in tax-free cash. It provides a lump sum of money to be used however you like – pay off debts or an unplanned expense or buy that vacation home you’ve always wanted. The choice is yours.


CHIP Max is designed to give our younger clients more immediate access to a higher percentage of their home equity. If you’re considering alternative lenders or a second mortgage, the CHIPMax Reverse Mortgage may offer you more value in the long run.

Income Advantage

Provides a steady stream of income to boost your existing retirement income. It helps make planning easier by filling in gaps between your current income and expenses. You determine the amount and the frequency of your advances.


CHIPs newest product is made for homeowners 55+ searching for a short-term financing solution with the option to repay the full loan amount at any time without prepayment penalties. If your financial situation changes and you need a longer-term loan, the CHIP Open loan can be converted to the CHIP Reverse Mortgage.

Would I be eligible if I was under 55 years of age?

If you’re under the age of 55 and you’re looking to access the equity of your home for home improvement, debt consolidation, health care or any other reason, we have an option for you! 

At Ardent Mortgages, we work with over 50 lenders to provide various products and programs to best suit our client’s needs.

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