What exactly is a reverse mortgage?

A reverse mortgage is a specialist home loan only available to people in Canada over the age of 55. It is called this because - unlike other mortgages - it doesn't require regular monthly payments.

You must be over 55 years old to qualify for one and the maximum amount you can borrow is 55% of the value of your home - usually they are offered for around 10% to 55% of your home's value.

Interest is charged but added to the amount owed, instead of being paid every month. 

How do I take out a reverse mortgage?

At present, the "Big 5" Canadian banks - RBC, BMO, CIBC, Scotiabank and TD do not offer a reverse mortgage.

There are several lending options available though - depending on where you live - including Home Equity Bank (the 'CHIP' reverse mortgage - see below), Equitable Bank and Bloom.

Manulife and Fraction also have products that can work in a similar way to a reverse mortgage - please contact me if you are interested in learning more about this.

How much does your service cost?

Just so you have it in black and white: my guide, my free 90 second reverse mortgage assessment and all the advice and recommendations I provide you regarding reverse mortgage rates are completely free - you will never pay me a penny (ever) for any of my reverse mortgage advice.  

What is CHIP?

CHIP stands for the Canadian Home Income Plan (CHIP) - this refers to the reverse mortgage offered by Home Equity Bank - one of several lenders offering a reverse mortgage in Canada.

It is what they previously called this before they changed it to 'CHIP reverse mortgage'. 

How much money can I get?

There are 3 key factors in deciding how much you qualify for under a reverse mortgage: (1) the location of your home, (2) your age and (3) the property type. You may qualify for as much as 55% of your home value but the range is usually somewhere between 10% to 55%.

If you're interested, I'll give you a free assessment, tell you how much you can get and advise you as to the best options for you simply click here to fill out my free assessment form.  

What if I already have a mortgage?

You can still take this out if you have a mortgage on your property. It would be the exact same process that you'd go through in taking your mortgage to another lender - they will simply replace your existing mortgage loan. You'd then get to keep any excess money available.

A reverse mortgage simply allows you to move away from having to make monthly mortgage payments while still gaining access to the equity in your home.  

What are the CHIP reverse mortgage rates?

Interest rates are actually set on a case by case basis - they'll depend on your home value, age, how much you're looking to borrow & term.

If you fill out my free 90 second online form, I'll compare CHIP reverse mortgage rates with what else is on the market to help find you the best deal.

What about the alternatives to a reverse mortgage?

Since I am an independent mortgage professional - I don't work for any of the lenders - I want to make sure that you see all of the options out there, and see what the reverse mortgage allows you to do.

I've outlined alternative options once you have completed my free online form.

Who are you?

I am a certified Chartered Accountant and licensed Mortgage Broker with my own brokerage Reverse Mortgage Pros - the #1 reverse mortgage brokerage in Canada.

As a mortgage professional, my job is to offer you independent, objective and professional advice on all of your financial needs.

As a reverse mortgage broker, I don't work for any bank or lender - I work for you. That's why I can find you the best rates and the lowest costs and fees (it isn't just about rates - you need to consider the other costs and fees too).

What paperwork is needed?

With reverse mortgages it is much easier to get a loan than is the case with any other kind of home equity loan. But we are still talking about lending large amounts of money, so this does not make it a walk in the park.

On top of this, there are factors to ensure that you are eligible for a reverse mortgage, including that you must be at least 55 years old, as well as an assessment of the value of your home, whether you are going to make monthly mortgage payments, and more. For more on the requirements, please get in touch with me.