HomeBridge is a new digital solution by HomeEquity BankTM designed to help Canadians 55+ leverage their home equity to gift their family – and establish their living legacy.
This is done by accessing the equity in the parents’ or grandparents’ home via the CHIP Reverse Mortgage, enabling them to make meaningful financial gifts while preserving their current standard of living. HomeBridge presents a key opportunity for Canadians 55+ to gift a living inheritance to their adult children and grandchildren who can benefit from the financial help when they need it most.
HomeBridge leverages the CHIP Reverse Mortgage, which is a loan secured against the value of the home. Unlike a loan or conventional mortgage, clients are not required to make regular mortgage payments with a CHIP Reverse Mortgage. The loan is repaid only when the homeowner no longer lives in the home.
The homeowner is required to keep the property in good condition, and stay up-to-date with property taxes and property insurance. The proceeds of the loan are received tax-free and can be used in any way the homeowner chooses.
HomeBridge can be used to:
- Establish a living legacy
- Help family purchase a home
- Support large family expenses
- Build a philanthropic family legacy
Key features of HomeBridge
Clients retain home ownership
Your clients get to stay in their home and community. Homeowners retain title and maintain ownership for as long as they choose to stay in the home.
No regular mortgage payments
There are no regular mortgage payments until the homeowner moves, sells, or passes away. This frees up additional cash for any of their financial goals.
Proceeds are received tax-free
Homeowners can access up to 55% of their home’s value in tax-free cash. Because they are unlocking home equity, the funds are not added to their taxable income and do not affect income-tested benefits such as Old Age Security (OAS).
HomeEquity Bank Prime Rate: 5.95%
HomeBridge leverages the CHIP Reverse Mortgage solution specifically for gifting and to help Canadians establish a living legacy. We do this by accessing the equity in the home via the CHIP Reverse Mortgage, so Canadians 55+ can contribute toward the home purchase of their adult children or grandchildren.
The following is a summary of the current CHIP Reverse Mortgage interest rates and terms offered by HomeEquity Bank.
| Term | Special Rate1 | Closing Fee2 | Annual Percentage Rate (APR)3 |
|---|---|---|---|
| Variable4 | % | $ | % |
| 1 Year | % | % | |
| 3 Years | % | % | |
| 5 Years | % | % |
| Term | Posted Rate | Closing Fee2 | Annual Percentage Rate (APR)3 |
|---|---|---|---|
| Variable5 | % | $ | % |
| 6-month | % | % | |
| 1-year | % | % | |
| 3-year | % | % | |
| 5-year | % | % |
1These rates are only available for new reverse mortgage originations in certain locations and are subject to meeting HomeEquity Bank’s credit granting criteria. Offer may be changed, extended or withdrawn at any time without notice. Rates are adjustments off of posted rates.
2These fees may vary based on individual circumstances.
3APR is the estimated cost of borrowing for years expressed as an annual percentage. It is based on a mortgage of $ and includes the applicable closing costs.
4Variable (Special) refers to the HomeEquity Bank Prime Rate plus a fixed spread of %. The fixed spread is guaranteed for years.
5Variable (Posted) refers to the HomeEquity Bank Prime Rate plus a fixed spread of %. The fixed spread is guaranteed for years.
Easy 3-step process
Calculate
Find out how much your client can get using the online calculator.
Connect
Contact your Business Development Manager who will answer any questions you or your client may have and walk you through the straightforward application process.
Enjoy!
Your client receives their tax-free money!
To be eligible, you must be a Canadian homeowner aged 551 or older, own your home, and it must be your primary residence. The home must also have an appraised value of at least $250,000.
1 This age requirement also applies to your spouse.
HomeBridge leverages the CHIP Reverse Mortgage Program, which is a non-recourse loan. This means that, at the time of repayment, you (or your estate) will never owe more than the fair market value of your home – our No Negative Equity Guarantee1 – as long as you have maintained your property taxes and insurance.
1 The guarantee excludes administrative expenses and interest that has accumulated after the due date.
HomeBridge lets your clients access up to 55% of the home’s appraised value.
No. Your client retains title and maintains ownership of their home. It’s required for your client to live in the home, pay taxes on time, have property insurance, and maintain the property in good condition.
Like with the CHIP Reverse Mortgage, HomeBridge is structured to ensure your clients get the money they need in precisely the way they want it.
No problem! Your existing mortgage will need to be paid off from your HomeBridge funds and then the remaining funds can be used to gift.
NOTE: Always consult your accountant or financial advisor.
