CHIP Canadian Home Income Plan FAQs

Is there an age limit for a CHIP reverse mortgage in Canada?

Yes, you and your spouse must be at least 55 years old in order to qualify for the Home Income Plan or reverse mortgage in Canada. If one or both of you are not yet 55, there is something very similar available, please see this page.

Is there a monthly payment required for the CHIP Canadian Home Income Plan?

No, you can have a Canadian Home Income Plan (Reverse Mortgage) for as long as you wish and never make a payment on that mortgage as long as you or your spouse lives in the home.

Is there a maximum amount I can borrow?

Yes, depending on your age and the condition of the house, you can borrow on average up to 55% of the value of your home. If you are a ‘young senior’, you may only be access 20% - 35%, which can be disappointing. Contact us to get a quick quote on how much you can access.

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What if the CHIP loan balance eventually exceeds the market value of my home?

No matter what, that the loan balance will not ever exceed the fair market value of the home. In other words you can never owe the lender more than the value of the home. They guarantee this in writing. In fact, in 99% of their files there is a surplus of equity remaining at the end of the loan.

What if I have bad credit? Will I still qualify for a Canadian Home Income Plan reverse mortgage in Canada?

Yes, if you are the right age and your house is in reasonable shape then you will qualify for a CHIP reverse mortgage. They do not check your credit.

How do I receive the funds from a CHIP reverse mortgage?

You can receive the money in one lump sum all at once, or as a pre-arranged supplemental income every month. Or a combination of both. It is entirely up to you.

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Do I have to pay taxes on the money I receive?

No, it does not qualify as taxable income.

Are there restrictions on how I use the money?

No, you can use it for any purpose.

What are the out-of-pocket costs to get a CHIP reverse mortgage?

You will need to pay an appraisal fee that can range from $175 to $400.

Are there any additional fees?

Yes,  a $1,495 package includes conveyance, closing and administrative costs, which will be deducted directly from the proceeds of your Canadian Home Income Plan reverse mortgage. Sometimes these fees are reduced if you are taking a five year term.

What is the interest rate on a reverse mortgage from Canadian Home Income Plan?

Just like a conventional mortgage, the interest rate varies, depending on the term that you choose. They have variable, 6 month fixed, 1 yr fixed, 3 yr fixed, 5 yr fixed, etc Contact us to get current rates and compare to the rates of conventional mortgages and lines of credit.

Why is the interest rate on a CHIP reverse mortgage higher than a conventional bank mortgage?

You are paying a small premium on rate for the luxury of not making a payment. Even with the higher interest rates, there is still only one lender in Canada wishing to offer this type of mortgage, so that does indicate why the value proposition of not receiving payments is not very attractive to investors.

Canadian Home Income Plan No Obligation Quote

Fill out our online form for a quote on a Canadian Home Income Plan reverse mortgage.



Rebecca is even considered the expert on Canadian Home Income Plan (CHIP) in China!