Frequently Asked Questions about Reverse Mortgages in Canada

How old do I have to be to qualify for a CHIP or Income Advantage reverse mortgage?

Both registered homeowners must be at least 55 years of age. There is no maximum age.

What is the maximum loan I can receive?

Depending upon your age, you can receive up to 55% of the appraised value of your home.  The minimum loan is $20,000. The maximum loan is $750,000.

When does the loan have to be repaid?

There are no repayment requirements until the homeowners decide to move out or sell their home.  Therefore, this could be when the surviving spouse passes away.

Will I lose the remaining Equity in my home over time?

The experience with homeowners who have a CHIP loan or Income Advantage product is that there has been little or no erosion of equity over time and in many instances, continued appreciation. Historically, 99% of the homeowners with reverse mortgages have equity remaining when the home is sold. This is because the loan is for a maximum of 55% of the home value while the homeowner continues to enjoy the benefits of appreciation on 100% of the home value. No matter what, HomEquity Bank guarantees to you and your family that the amount to be repaid will never exceed the fair market value of the home at the time it is sold.

Will I have to pay taxes on the CHIP funds I receive?

These funds are not taxable because they are a loan. In fact you might save on taxes because the interest on the CHIP or income Advantage reverse mortgage may be deducted against interest earned on non registered investments made with the reverse mortgage loan proceeds.

Should reverse mortgages only be considered as a loan of last resort? 

No. Many financial professionals recommend a reverse mortgage to supplement monthly income instead of selling and downsizing, or taking out a conventional mortgage or a line of credit.

Will the bank own the home?

No. The homeowner retains title and maintains ownership of the home. It’s required for the homeowner to live in the home, pay taxes on time, have property insurance, and maintain the property in good condition.

What if the homeowner has an existing mortgage?

Many of our clients use a reverse mortgage to pay off their existing mortgage and debts. 

What if the homeowner can’t afford payments?

There are no monthly interest payments required as long as the homeowner is living in the home. The interest is added to the outstanding principal and can be paid from the sale proceeds of the home

What if I have bad credit? Will I still qualify?

Bad credit does not prevent a homeowner from receiving a reverse mortgage.  If your credit is low, you may need to prove your ability to meet your basic property expenses such as home insurance, propert y taxes etc. as these are expenses which the lender requires the homeowner to pay and keep up to date during the term of the reverse mortgage.

How do I get started?

Please complete and send your Certified Reverse Mortgage Specialist the online application form , call us at 1-855-770-3225, or send us an e-mail.

Mortgages for Seniors is an authorized partner with HomEquity Bank, provider of the CHIP Home Income Plan and Income Advantage, and both Joanne Thomas and Neil Shopsowitz are Certified Reverse Mortgage Specialists and licenced mortgage brokers specializing in financing for seniors.  We assist clients across Canada from Vancouver to Victoria, Calgary, Edmonton, Saskatoon, Regina, Winnipeg, Hamilton, Kitchener, Toronto, Ottawa, Montreal, Quebec City, Fredericton, Halifax, Charlottetown and St. John's and every town, and rural area in between.