Is CHIP the best reverse mortgage in Canada?

CHIP (HomeEquity Bank) is the only reverse mortgage lender in five provinces and the most widely available nationally, but it is not always the best rate. In Ontario, BC, and Alberta, Equitable Bank, Bloom, Home Trust, and Fraction may offer lower rates or better product fit. A broker compares all five lenders — CHIP included — for your province and home.

When is a HELOC better than CHIP?

A HELOC is better than CHIP when you have strong retirement income to qualify, can comfortably make monthly interest payments, and only need short-term or intermittent access to equity. HELOC rates are lower (typically prime + 0.5% to 1%), but most retirees cannot qualify or sustain payments — which is why CHIP and other reverse mortgages exist.

Is downsizing cheaper than a CHIP reverse mortgage?

Downsizing unlocks full equity but costs $50,000–$100,000+ in Canadian transaction costs (commissions, land transfer tax, moving, staging). A CHIP reverse mortgage lets you stay in your home and access 15–55% of equity with no monthly payments. Downsizing makes sense when you want to move anyway; a reverse mortgage makes sense when you want to age in place.

Can I get CHIP if I still owe on my mortgage?

Yes. CHIP proceeds first pay off any existing mortgage; you receive the remainder. This eliminates monthly mortgage payments and may provide additional cash — a common use case for Canadian retirees.

Alternatives Hub

CHIP Reverse Mortgage vs Alternatives

HomeEquity Bank's CHIP is Canada's most available reverse mortgage — but is it right for you? Compare CHIP against HELOC, downsizing, refinancing, and other options.

CHIP (HomeEquity Bank) is Canada's largest reverse mortgage lender, available in all 10 provinces — but it is not your only option for accessing home equity. Before choosing CHIP, compare it to a HELOC, refinancing, downsizing, property tax deferral, or competing reverse mortgage lenders (Equitable, Bloom, Home Trust, Fraction). This 2026 guide explains when CHIP wins and when an alternative fits better.

CHIP at a glance (2026)

Availability: All 10 Canadian provinces — the only lender in MB, SK, NB, PE, NL
Age: 55+ (all titleholders)
Max LTV: Up to ~55% depending on age
Payments: None required
5-year fixed rate: ~7.24% posted; special rates near 6.64% in eligible locations (see current rates)
Setup fee: $1,795–$2,995 depending on product

See our full CHIP reverse mortgage guide for product-level detail (CHIP, CHIP Max, CHIP Open, Income Advantage).

CHIP vs HELOC

Factor	CHIP	HELOC
Monthly payments	None required	Interest (minimum) required
Income qualification	Not required	Required
Credit score	Not required	Required
Typical rate (2026)	~6.64%–7.24%	Prime + 0.5%–1% (~5%–6%)
Can lender freeze access?	No — funds committed	Yes — common in downturns
Best for	Retirees with modest income	Retirees with strong pension income

Verdict: If you cannot qualify for a HELOC or cannot afford monthly payments, CHIP (or another reverse mortgage) is typically the better path despite the higher rate.

CHIP vs downsizing

Downsizing frees 100% of equity minus transaction costs ($50K–$100K+ in Canada). CHIP accesses 15–55% while you stay put. Downsizing wins when you want to move; CHIP wins when aging in place matters. Use our downsizing calculator to compare.

CHIP vs refinancing

Refinancing to 80% LTV requires passing the federal stress test and making monthly payments — barriers most retirees cannot clear. CHIP bypasses both. Refinancing only makes sense with substantial ongoing income.

CHIP vs other reverse mortgage lenders

In Ontario, BC, and Alberta, you are not limited to CHIP:

Equitable Bank Flex — often lower rates (~6.44% on Flex Lite); broker-exclusive in ON, BC, AB, QC
Bloom Finance — lifetime fixed SafeRate™ (~6.69%); Prepaid Mastercard draws
Home Trust EquityAccess — competitive rates; ON, BC, AB, NS
Fraction — shared-appreciation model; no monthly payments

In provinces with only CHIP (Manitoba, Saskatchewan, Atlantic except NS), CHIP is your reverse mortgage option — but a broker still helps you pick the right CHIP product. Read CHIP vs Equitable and CHIP vs Bloom for lender-level comparisons.

When to choose CHIP

You live in a province with no other reverse mortgage lender
You need rural or remote property coverage (CHIP accepts more geographies)
You want Income Advantage monthly/quarterly advances
You value the longest track record and brand recognition in Canada

When to explore alternatives first

You qualify for a HELOC and can afford payments → lower rate, full flexibility
You want to move anyway → downsizing may unlock more net equity
You are in ON, BC, or AB → compare all five lenders before defaulting to CHIP
Your need is modest (property taxes only) → provincial tax deferral may suffice

Run the numbers: CHIP vs HELOC

Compare Your Options

Estimated home value

Amount needed

Time horizon

Related guides

CHIP Reverse Mortgage Guide
Alternatives to Reverse Mortgages
HELOC vs Reverse Mortgage — Side-by-side cost and requirement comparison
Reverse Mortgage Rates Canada 2026 — Current 5-year fixed rates from all five lenders
CHIP vs Equitable Comparison — Side-by-side product and rate differences
How Reverse Mortgages Work

Not sure if CHIP or an alternative is right?

Book a free call. We'll compare CHIP against every option — including the other four reverse mortgage lenders — for your province and goals.

Book a Free Call

Compare All 5 Reverse Mortgage Lenders

CHIP is one of five. See side-by-side rates, fees, and products before you decide.