CHIP Reverse Mortgage is a loan secured against the value of the home. Unlike a loan or conventional mortgage, clients are not required to make regular mortgage payments with a CHIP Reverse Mortgage. The loan is repaid only when the homeowner no longer lives in the home.
The homeowner is required to keep the property in good condition, and stay up-to-date with property taxes and property insurance. The proceeds of the loan are received tax-free and can be used in any way the homeowner chooses.
The CHIP Reverse Mortgage can be used to:
- Boost cashflow
- Take a vacation
- Maintain a desired lifestyle
- Pay down debt
- Handle unexpected expenses
- Build a financial cushion
Key features of the CHIP Reverse Mortgage
Clients retain home ownership
Your clients get to stay in their home and community. Homeowners retain title and maintain ownership for as long as they choose to stay in the home.
No regular mortgage payments
There are no regular mortgage payments until the homeowner moves, sells, or passes away. This frees up additional cash for any of their financial goals.
Proceeds are received tax-free
Homeowners can access up to 55% of their home’s value in tax-free cash. Because they are unlocking home equity, the funds are not added to their taxable income and do not affect income-tested benefits such as Old Age Security (OAS).
HomeEquity Bank Prime Rate: %
The following is a summary of the current CHIP Reverse Mortgage interest rates and terms offered by HomeEquity Bank.
| Term | Special Rate1 | Closing Fee2 | Annual Percentage Rate (APR)3 |
|---|---|---|---|
| Variable4 | % | $ | % |
| 1 Year | % | % | |
| 3 Years | % | % | |
| 5 Years | % | % |
| Term | Posted Rate | Closing Fee2 | Annual Percentage Rate (APR)3 |
|---|---|---|---|
| Variable5 | % | $ | % |
| 6-month | % | % | |
| 1-year | % | % | |
| 3-year | % | % | |
| 5-year | % | % |
1These rates are only available for new reverse mortgage originations in certain locations and are subject to meeting HomeEquity Bank’s credit granting criteria. Offer may be changed, extended or withdrawn at any time without notice. Rates are adjustments off of posted rates.
2These fees may vary based on individual circumstances.
3APR is the estimated cost of borrowing for years expressed as an annual percentage. It is based on a mortgage of $ and includes the applicable closing costs.
4Variable (Special) refers to the HomeEquity Bank Prime Rate plus a fixed spread of %. The fixed spread is guaranteed for years.
5Variable (Posted) refers to the HomeEquity Bank Prime Rate plus a fixed spread of %. The fixed spread is guaranteed for years.
Easy 3-step process
Calculate
Find out how much your client can get using the online calculator.
Connect
Contact your Business Development Manager who will answer any questions you or your client may have and walk you through the straightforward application process.
Enjoy!
Your client receives their tax-free money!
CHIP requires no health checks. It is required that your clients are over 551, own the home, and use it as the primary residence.
1 This age requirement also applies to your spouse.
We guarantee that the amount to be repaid will never exceed the fair market value of your client’s home. Your client’s other assets are completely protected.
CHIP lets your clients access up to 55% of the home’s appraised value.
No. Your client retains title and maintains ownership of their home. It’s required for your client to live in the home, pay taxes on time, have property insurance, and maintain the property in good condition.
The CHIP Reverse Mortgage is structured to ensure your clients get the money they need in precisely the way they want it. They can access their money in monthly installments or initial and periodic advances — or choose a combination of these options.
Many of our clients use a reverse mortgage to pay off their existing mortgage and debts.
* Always consult your accountant or financial advisor.
