Today’s Reverse Mortgage Rates updated as of April 15, 2026 1:51 pm
*Rates can change at anytime. Other conditions apply. Rate in effect as of today.
Available to homeowners 55+
Access up to 55% of your home’s value
No monthly mortgage payments required
Interest compounds over time
Loan is repaid when the home is sold or ownership changes
Higher cost than traditional mortgages
Best used strategically, not casually
A CHIP Reverse Mortgage allows Canadian homeowners aged 55 and older to access tax-free cash from their home equity without making monthly mortgage payments. While this can provide meaningful financial flexibility in retirement, reverse mortgages come with important long-term trade-offs that should be fully understood before proceeding.
At Citadel Mortgages, we help Canadians evaluate reverse mortgages honestly — including when a CHIP reverse mortgage makes sense and when it doesn’t.
A CHIP Reverse Mortgage is a type of reverse mortgage in Canada that allows homeowners to convert a portion of their home equity into tax-free cash.
You:
Keep full ownership of your home
Do not make monthly mortgage payments
Continue paying property taxes, insurance, and maintenance
Repay the loan when the home is sold or the last homeowner leaves the property
Over time, the balance grows as interest compounds.
Important note – You can make mortgage payments if you wish to do so as an option.
Here’s how it typically works:
Homeowners must be at least 55 years old
The property must be a primary residence
A professional appraisal determines the home’s value
Funds are received as a lump sum or scheduled advances
Interest accrues and compounds over time
The loan is repaid when the home is sold, ownership changes, or the last borrower passes away
You will never owe more than the value of your home at the time of sale (negative equity protection applies).
Use our Reverse Mortgage Calculator to get an estimate of your borrowing potential.
Most homeowners can access:
Up to 55% of their home’s value
The exact amount depends on:
Age of the youngest borrower
Property location and type
Current interest rates
Home value and appraisal results
Generally, the older the borrower, the higher the available percentage.
Reverse mortgages are more expensive than traditional mortgages or HELOCs.
Key considerations include:
Higher interest rates
Compounding interest over time
Reduced home equity in the future
Impact on estate value for heirs
Setup and closing costs
The longer a reverse mortgage remains in place, the greater the total cost.
The Financial Consumer Agency of Canada recommends reviewing total borrowing costs, not just monthly affordability.
A CHIP reverse mortgage may make sense if you:
Are retired or near retirement
Plan to remain in your home long-term
Need tax-free cash flow
Have limited income but significant home equity
Do not qualify for traditional refinancing
It may not be suitable if you:
Expect to sell in the near future
Want to preserve maximum estate value
Qualify for lower-cost borrowing
Only need short-term financing
A CHIP reverse mortgage may include:
Home appraisal fee
Legal and closing costs
Administrative or setup fees
Interest that compounds over time
In most cases, these costs are:
Rolled into the mortgage
Not paid out-of-pocket upfront
Not paid monthly
📌 Exact costs vary based on property value, location, and lender guidelines.
Here’s a breakdown of typical fees associated with an CHIP Reverse Mortgage:
To review eligibility and provide accurate options, lenders typically request:
2 IDS front and back, including Government-issued photo ID
Most recent NOA
Property tax statement
Home insurance confirmation
Existing mortgage statement (if applicable)
Basic property details (address, type, occupancy)
📌 Documents are usually collected digitally – See our mortgage document checklist page for more details.
This process is designed to be straightforward and low-stress.
No monthly payments
Higher long-term interest cost
Equity decreases over time
Best for homeowners staying long-term
Lower interest cost
Monthly payments required
Greater flexibility
Requires income qualification
Access equity without debt
Requires selling and moving
Lifestyle change required
The right option depends on your timeline, income, goals, and estate planning priorities.
.
A CHIP reverse mortgage can be a powerful retirement tool when used correctly — but it should never be chosen without understanding how compounding interest affects long-term equity and estate outcomes.
Our role is to help clients model the future impact, not just solve today’s cash needs.
Yes, CHIP reverse mortgages in Canada are regulated by federal and provincial laws. Lenders like HomeEquity Bank and Equitable Bank offer government-backed solutions with no negative equity guarantees.
No. Negative equity protection applies
The loan is typically repaid when you sell your home, move into long-term care, or pass away. You or your estate won’t owe more than the home’s fair market value at the time of sale.
Here are some examples of how clients commonly use it:
No, both you and your spouse must be at least 55 years old to qualify for a reverse mortgage in Canada.
No, as long as you meet your obligations, such as keeping your property taxes and insurance up to date, you can stay in your home for life.
Canadian reverse mortgages come with a no negative equity guarantee, meaning you’ll never owe more than the value of your home.
The loan is typically repaid when you sell your home, move into long-term care, or pass away.
Yes, prepayment penalties may apply. However, Equitable Bank offers flexible repayment options to minimize costs.
Citadel Mortgages helps Canadian homeowners:
Compare reverse mortgages vs alternatives
Understand long-term equity impact
Review estate planning considerations
Evaluate total costs over time
Make informed, pressure-free decisions
We prioritize education, transparency, and suitability — especially for retirement decisions.
A reverse mortgage can provide financial flexibility in retirement — but only when it aligns with your long-term plans.
Citadel Mortgages will help you:
Determine if a CHIP reverse mortgage is appropriate
Compare options objectively
Understand the impact on your future and your family
Understanding your reverse mortgage potential is easier with our Reverse Mortgage Calculator. This tool provides an instant estimate of how much equity you can access based on:
Try the Citadel Mortgages Reverse Mortgage Calculator today to explore your options!