CHIP Reverse Mortgage in Ontario: An Unbiased Independent Broker's Guide
The short answer: CHIP is Canada's oldest and largest reverse mortgage — a solid product for many Ontario homeowners 55+ — but it is not your only option, and the advertised version is not always the best deal you can get.
This guide explains how much CHIP really pays, every fee involved, how it compares to Equitable Bank and Bloom, and the questions to ask before you sign anything — written by Rick Sekhon, a licensed Ontario mortgage broker (Lic. #M08009007) with access to 70+ lenders, who is paid the same no matter which lender you choose.
416-473-9598Call Rick for Current CHIP RatesWhat Is the CHIP Reverse Mortgage?
The CHIP Reverse Mortgage is a loan from HomeEquity Bank, a federally regulated Canadian Schedule 1 bank, that lets homeowners aged 55 and older convert part of their home's value into tax-free cash — with no monthly payments for as long as they live in the home. “CHIP” originally stood for Canadian Home Income Plan, and the product has existed since 1986, which is why for many Canadians the brand is synonymous with reverse mortgages themselves.
You keep full ownership and title. Interest is added to the balance instead of being paid monthly, and the loan is repaid when you sell, move out permanently, or your estate settles. Like every federally regulated reverse mortgage in Canada, CHIP carries a No-Negative-Equity Guarantee: you can never owe more than the fair market value of your home.
HomeEquity Bank offers several variations — the standard CHIP Reverse Mortgage, CHIP Open (higher rate, no prepayment penalties), CHIP Max (higher loan amounts for qualifying properties), and Income Advantage (smaller scheduled advances). Which one fits depends entirely on how you plan to use the money.
How Much Does CHIP Pay in Ontario?
Up to about 55% of your home's appraised value. Your age is the biggest factor — the older you are, the higher the percentage — followed by your property type and location. Urban Ontario properties (Toronto, Ottawa, Hamilton, Mississauga) generally qualify for more than rural ones.
| Age of Youngest Owner | Typical Share of Home Value* | On an $800,000 Ontario Home |
|---|---|---|
| 55–59 | ≈ 15–30% | ≈ $120,000–$240,000 |
| 60–69 | ≈ 25–40% | ≈ $200,000–$320,000 |
| 70–79 | ≈ 35–50% | ≈ $280,000–$400,000 |
| 80+ | ≈ 45–55% | ≈ $360,000–$440,000 |
*Approximate ranges for illustration — actual offers depend on age, property, location, and lender. Call Rick for a precise, no-obligation quote for your home.
What Does CHIP Actually Cost?
Three one-time costs, plus a higher interest rate than a regular mortgage. The fees are modest and mostly deducted from your proceeds — the interest rate is the number that matters over time, because it compounds instead of being paid monthly.
| Cost | Typical Amount* | When You Pay |
|---|---|---|
| Home appraisal | $300 – $600 | Up front |
| Independent legal advice (mandatory) | $400 – $800 | At signing |
| Closing & administration fee | $1,800 – $2,000 | Deducted from proceeds |
| Interest rate | Higher than conventional mortgages/HELOCs — varies by term | Compounds; repaid when home is sold |
*Approximate 2026 figures; confirm current amounts before signing. Rates change regularly — call for today's rates across all lenders.
Worried about the balance growing? Two facts keep it in perspective: you can make optional interest payments any time to freeze the balance, and Ontario home values have historically grown alongside the interest — the No-Negative-Equity Guarantee protects you even if they don't. See our guide on how to exit a reverse mortgage if flexibility is a concern.
Is CHIP Your Only Option? No — Compare Before You Sign
No. Ontario has several reverse-mortgage lenders, and they compete on rate, maximum loan size, and flexibility. This is exactly why independent advice pays for itself:
| Lender | Product | Known For |
|---|---|---|
| HomeEquity Bank | CHIP / CHIP Max / CHIP Open / Income Advantage | Largest lender, longest track record, widest property acceptance |
| Equitable Bank | Flex / Flex PLUS | Frequently sharper rates; strong option in urban Ontario |
| Bloom Financial | Bloom Reverse Mortgage | Newer entrant, flexible smaller advances |
| Home Trust | EquityAccess | Alternative equity-release structure worth pricing |
For a deeper side-by-side, read our four-lender Ontario comparison and CHIP vs Equitable Bank. If you're weighing a reverse mortgage against a line of credit, see reverse mortgage vs HELOC in Ontario.
CHIP Pros and Cons — The Honest List
✓ Where CHIP Shines
- • No monthly payments, ever — by design
- • Tax-free; no effect on OAS, GIS, or CPP
- • No income or credit-score qualification
- • You keep title and ownership for life
- • No-Negative-Equity Guarantee protects your estate
- • 35+ year track record with a regulated bank
✗ Where to Be Careful
- • Interest rates run higher than mortgages/HELOCs
- • Interest compounds — the balance grows over time
- • Prepayment penalties can apply if you exit early (CHIP Open avoids this at a higher rate)
- • Reduces the equity your heirs eventually receive
- • Setup costs of roughly $2,500–$3,400 all-in
- • The first offer isn't always the best — compare
One more safeguard worth knowing: you keep your obligations to pay property taxes and insurance. Missing those — not the loan itself — is what can put any homeowner at risk. Details in our guide on reverse mortgage default triggers.
Who Qualifies for CHIP in Ontario?
If you're 55+, own your Ontario home, and have meaningful equity — you very likely qualify. All registered owners must be at least 55. There is no income verification and no minimum credit score. Full details in the complete eligibility guide.
Why Get CHIP Through an Independent Broker?
Calling the number in the CHIP commercial gets you exactly one lender's offer. Working with Rick Sekhon costs you nothing extra — brokers are paid by the lender you ultimately choose — and gets you:
- ✓ Every reverse-mortgage lender in Ontario compared, not just one
- ✓ Rate and terms negotiated on your behalf
- ✓ An honest “no” if a reverse mortgage isn't your best move — sometimes a HELOC, refinance, or downsizing wins
- ✓ A licensed Ontario broker (Lic. #M08009007, RMA #10464) who answers his own phone
CHIP Reverse Mortgage — Frequently Asked Questions
Get Your CHIP Quote — and Every Alternative
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