Reverse mortgage (CHIP)

What this is

Borrow against your home — pay nothing until you sell or pass

Reverse mortgages (Canada: HomeEquity Bank CHIP, Equitable Bank Reverse Mortgage) let homeowners 55+ borrow against their home equity. No monthly payments. The interest compounds until the home is sold or the last owner passes — then it's paid off from the sale proceeds.

• ·Eligible: homeowners 55+ with primary residence. Max loan = 40-55% of home value.
• ·Rates: 7-9% range in 2026 (much higher than a traditional mortgage). Compounds — so $200k can become $400k in ~10 years.
• ·Remaining equity = home value (appreciated) − loan balance. Often shrinks even if home prices rise.
• ·Worth it only when no other income sources exist + home is the primary asset + estate to heirs isn't a priority.