CHIP Max is a reverse mortgage loan secured against the value of the home. It’s designed to help younger clients access a greater amount of their home equity.
Clients are not required to make regular mortgage payments while they remain in their home, but are required to keep the property in good condition and stay up to date with property taxes and insurance. The loan is repaid only when the homeowner no longer lives in the home.
CHIP Max can be used to:
- Pay down debt
- Create a financial cushion
- Meet unexpected expenses
- Maintain lifestyles
- Build investment portfolios
- Boost cashflow
Key features of CHIP Max
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: %
The following is a summary of the current CHIP Max interest rates and terms offered by HomeEquity Bank.
| Term | Interest Rate | Closing And Administrative Costs1 | Annual Percentage Rate (APR)2 |
|---|---|---|---|
| Variable3 | % | $ | % |
| 6 Month | % | % | |
| 1 Year | % | % | |
| 3 Years | % | % | |
| 5 Years | % | % |
CHIP Max is only available in certain locations and is subject to meeting HomeEquity Bank’s credit granting criteria.
1These fees and interest rates may vary based on individual circumstances, including any additional rate premiums added on your file.
2APR 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.
3Variable 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!
It is required that your clients are over 55, own the home, and use it as the primary residence. CHIP Max requires no health checks.
1.This age requirement applies to both spouses.
We guarantee that the amount to be repaid will never exceed the fair market value of your client’s home.* Your client’s other assets are completely protected.
CHIP Max 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.
CHIP Max is structured to ensure your clients get the money they need in precisely the way they want it. They can access money in a lump-sum or optional subsequent advances.
Yes, many of our clients use a reverse mortgage to pay off their existing mortgage and debts.
* Conditions apply. You must maintain the condition of your property and your taxes and insurances must be up to date. Guarantee, excludes administrative fees and interest accumulated after due date. Always consult your accountant or financial advisor.
