When it comes to investing in real estate, many clients—especially those approaching or already in retirement—face a familiar dilemma: how to fund a property purchase without liquidating investments or triggering unwanted tax consequences. That’s where the CHIP Reverse Mortgage by HomeEquity Bank comes in.
The CHIP Reverse Mortgage is a unique financial tool that not only can help cover expenses in retirement— but it can also be a powerful strategy for real estate investment.
Why Use the CHIP Reverse Mortgage for Real Estate?
For Canadian homeowners aged 55 and better, the CHIP Reverse Mortgage enables clients to access up to 55% of their home’s equity, tax-free. Best of all, there are no monthly mortgage payments required, which gives clients more flexibility in how they manage their cash flow.
Strategic Ways Clients are Using CHIP for Real Estate
- Purchase an Investment Property: Clients can use the funds they receive from the CHIP Reverse Mortgage to purchase a second property—such as a rental unit, vacation home, or condo for a family member—without dipping into RRSPs, TFSAs, or other investments. That means no capital gains to report, no taxable withdrawals, and no disruption to their long-term portfolio strategy.
- Renovate to Increase Property Value: Whether they’re preparing a home for sale or improving a rental property, clients can use CHIP Reverse Mortgage funds for renovations—without impacting their cash flow.
- Preserve Wealth While Expanding It: Many clients are wary of selling assets in a down market or pulling from registered funds early. With the CHIP Reverse Mortgage, they can preserve their portfolio and estate plan, while still seizing opportunities to build wealth through real estate.
Real Client Example: Tanya & Raymond
Take Tanya and Raymond, for instance. Both in their 70s and longtime homeowners in West Vancouver, they had their eye on a family vacation home. Rather than selling off investments and facing tax implications, they accessed $875,000 tax-free from their $2.5M home through the CHIP Reverse Mortgage.
The result? They purchased a $650,000 lakeside property in Cultus Lake—and even picked up a boat for the grandkids. All without monthly payments, and with equity to spare.
The CHIP Reverse Mortgage is a flexible, tax-efficient way to unlock equity and create new opportunities. If you have clients considering a second property—but are concerned about liquidity or tax implications—this could be the ideal solution.
Connect with your HomeEquity Bank BDM or BDA to explore how the CHIP Reverse Mortgage could support your clients’ real estate goals.
