As you enter retirement, financial stability may be top of mind. Whether you’re looking to cover unexpected expenses, help family members, or simply enhance your lifestyle, having access to additional income can make a difference. For Canadian homeowners aged 55 and better, the CHIP Reverse Mortgage by Home Equity Bank provides a smart, flexible way to access tax-free cash from your home’s equity.

How Does the CHIP Reverse Mortgage Work?

The CHIP Reverse Mortgage allows you to unlock up to 55%1 of the value of your home without the need to sell or move and unlike a traditional loan, there are no monthly mortgage payments required.

Three Ways You Can Use Your Home Equity

Protect Your Retirement Savings
Many retirees rely on their RRSPs, TFSAs, or other savings to manage expenses. However, withdrawing large amounts can lead to hefty taxes and diminish long-term retirement funds. With the CHIP Reverse Mortgage, you can access tax-free cash from your home equity, preserving your savings and allowing your investments to continue growing.
Manage Debt and Unexpected Costs
Whether it’s high-interest credit card debt or unplanned medical expenses, managing financial surprises in retirement can be stressful. The CHIP Reverse Mortgage gives you the flexibility to pay off existing debts by consolidating the debt or handle unforeseen costs without affecting your monthly cashflow or budget that you may have set for yourself.
Live Retirement Your Way
Retirement is your time to enjoy life. Whether it’s traveling, renovating your home, or helping your children and grandchildren, the CHIP Reverse Mortgage gives you the financial freedom to make the most of your retirement – on your terms.
Why Choose the CHIP Reverse Mortgage?

No Monthly Payments Required: Focus on enjoying retirement without worrying about monthly mortgage payments.
Stay in Your Home: A common misconception about reverse mortgages is that the bank takes ownership of your home—but that’s not true. With the CHIP Reverse Mortgage, Home Equity Bank provides tax-free cash based on your home’s value, while you remain the owner. You’re simply responsible for property taxes and upkeep. According to an Ipsos survey conducted on behalf of Home Equity Bank, 93%2 of Canadians want to age in place, staying in the home they love. With CHIP, you can access your home’s equity and enjoy retirement on your terms.
Tax-Free Cash: Because you are unlocking home equity, the funds received from the CHIP Reverse Mortgage are not added to your taxable income and do not affect government benefits such as Old Age Security (OAS).
No Negative Equity Guarantee: The CHIP Reverse Mortgage has a No Negative Equity Guarantee3, which means that if you meet your property taxes and mortgage obligations, Home Equity Bank guarantees that the amount owed on the due date will not exceed the fair market value of your home. If the house depreciates and the mortgage amount owing is more than the gross proceeds from the sale of the property, Home Equity Bank covers the difference between the sale price and the loan amount.
Is the CHIP Reverse Mortgage Right for You?

If you want to enhance your retirement lifestyle while staying in the home, you love — without dipping into your savings — the CHIP Reverse Mortgage could be a potential solution for you. To explore how you can access tax-free cash through your home’s equity, contact your Dominion Lending Centres mortgage expert to learn more about the CHIP Reverse Mortgage.

1Some conditions apply.

2Survey conducted by Ipsos on behalf of Home Equity Bank April 12-16, 2022

3As long as you keep your property in good maintenance, pay your property taxes and property insurance and your property is not in default. The guarantee excludes administrative expenses and interest that has accumulated after the due date

To learn more about how the CHIP Reverse Mortgage can help you WITH TAX FREE CASH, contact your DLC mortgage expert:

Lalit Wasdev,
Email: lalitwasdev@dominionlending.ca,
Cell: 604 358 0106, Mortgage Broker,
DLC – First pacific Mortgage A Better Way, Vancouver.

AS Published by Home Equity Bank ON DLC

With the Bank of Canada rate decreases throughout the summer and into September, I thought this would be a great opportunity to update you on what this means for your mortgage.

If you’re on a variable-rate mortgage, this will result in a slight decrease in your mortgage payments to match the current rates giving you more cash flow each month!

For example, if your mortgage balance is $750,000 at the previous 5.95% interest rate your approx. compounded monthly payment was likely $4,809. With the new rate of 5.45% your approx. compounded monthly payment on an adjustable-rate mortgage will be $4,583*. This is an estimated $226/m decrease ($30/m per 100k balance) on your payment.

*Rates based on example of Prime minus .50% (old prime 6.45 and new prime 5.95)

For those of you who are on fixed-rate mortgages* or have renewals coming up, this reduction in interest rates could make it easier on you at renewal time. The decrease in interest rates gives you more borrowing power in the market – this means your money can go further!

*Remember, the drop in the Bank of Canada fixed rates may not result in the same drop for fixed mortgages as with variable rates. The decrease in interest rates will however open up new variable options and, depending on your lender may still provide allow you to take advantage of lowered rates.

This is the same for first-time buyers! Lower interest rates mean you now have more borrowing power in the marketplace, which could help you find that perfect home by allowing you to allocate monthly funds to your mortgage more comfortably.

In more good news, The Bank of Canada has two more decision dates this year in October and December. Experts anticipate the Bank of Canada will continue these quarter-point rate cuts, taking the overnight rate down to 4.0% at year-end and potentially down to 2.75% next year.

Whether you’re a current homeowner, looking to renew, or wanting to purchase, this is exciting news for Canadians across the country!

However, keep in mind rate is not the be-all-end-all of mortgages. It is important to keep in mind that factors such as type of mortgage, down payment amount, payment schedule, amortization, and more will also affect your mortgage and affordability.

If you want more information about your specific mortgage and how this affects your situation, please don’t hesitate to reach out to a DLC Mortgage Expert today!

To learn more about how the CHIP Reverse Mortgage can help you consolidate debt, contact your DLC mortgage expert:

Lalit Wasdev,
Email: lalitwasdev@dominionlending.ca,
Cell: 604 358 0106, Mortgage Broker,
DLC – First pacific Mortgage A Better Way, Vancouver.

AS published by DLC Marketing team.