Frequently Asked Questions

How much can I borrow?
This depends on your age and the value of your home. Typically the older you are the higher the percentage you can borrow. Call me for details.

Who Is Eligible?
Reverse Mortgages are available to people aged 55 and over who own their own home. The borrowing limit is based on the age of the younger applicant.

How much will I be able to leave my family?
This will depend on how much of the available equity in your home you decide to borrow against, interest rates, house price inflation and the duration of the loan. In CHIP’s many years of experience, 99 out of a 100 homeowners have money left over when their CHIP Home Income Plan is repaid. And on average, the amount left over is 50% of the value of the home when it is sold.

Do I need to get my house appraised?
Yes, a valuation by an accredited appraiser will be required. We will appoint a third party appraiser when we receive your application. The appraiser will inspect your house before we proceed with your application.

What are the set up costs?
Canadian Home Income Plan’s legal and closing costs are currently $1495.00 for the 6 month, 1, 3 and 5 year options, and $1995.00 for all others. There is also the cost of the appraisal, which can run anywhere from $200 to $400 depending on your area. Setup costs are deducted from your reverse mortgage proceeds so they are not an out of pocket expense, but the appraisal must be paid for by you directly to the appraiser. Additional costs will apply for your independent legal advice and any special situations that are required by the lenders to advance funds, or that are requested by you.

What are the requirements for my home?
CHIP will loan against single family detached homes, semi-detached homes, row housing units, townhouse condos and apartment condos. Please note that they will NOT loan against properties that are on leased land, or in remote areas.

Do I continue to own my property?
Yes, you still have ownership of your property and can continue to live in it without repayment until you sell or move out of your home, as long as your loan is in good standing.

Do I need to make repayments?
No. This type of loan is designed so that you continue to live in your home without repayment. If you like, you may make an earlier repayment or repayments on either the interest or the principal amount. There are no payments required until you sell or move out of your home. However, if you choose to pay the current years outstanding interest, CHIP will give you a deduction on the following years interest.

What if I want to make repayments?
CHIP gives you the option to repay the principal and interest in full at any time. When you repay, an interest rate differential may apply (limited to 3 months' interest). If you repay within the first three years, a prepayment amount will apply. These may be waived or reduced in the event of death or a move to a long-term care facility or retirement residence. These penalties do not apply if you are just paying interest. What happens to my home when I die or move to permanent long-term care? Unless other arrangements have been made to repay the loan, your home must be sold when you or your surviving partner either move or pass away.

Can I borrow more later if I need it?
Yes. Applications for further borrowing are allowed at any time subject to lending criteria and set-up costs at that time. What will happen if the value of my property decreases? You or your estate will never be required to repay more than the fair market value of your house at the time of sale, even if your property's value falls or your loan exceeds this amount.

Can I move if I want to?
Yes, you may move at any time and you have the option to pay out your existing reverse mortgage loan, or you can transfer all or part of it to your new home subject to certain criteria. If the new home is worth more than your old home you can transfer the entire balance over to your new home. If the new home is worth less than your old home you may need to pay down some of your reverse mortgage balance to keep the loan to value ratio in line. It is important to check with me before selling your home to determine the best course of action.