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Is a reverse mortgage the right solution for your clients?

March 6, 2023 | Last updated on October 11, 2023
3 min read
Financial advisor showing terms of contract to happy couple on notepad


Your clients’ financial planning objectives are continually evolving, and those of your clients aged 55 or better are no exception. They are living longer lives in retirement and want to keep their investment portfolios intact for as long as possible. They also want to maintain their desired lifestyles and seek greater cashflow certainty to realize their retirement dreams. Some clients would like to help their children with a down payment on their first home, while others may want to spruce up and renovate their homes so they can age comfortably in place.

Listening carefully to the goals and needs of your clients can help you provide them with the best advice for their situation. However, a challenge faced by many 55+ Canadians is that persistent inflation and high interest rates make it challenging to plan confidently. One financial solution worth considering is the CHIP Reverse Mortgage by HomeEquity Bank.

The CHIP Reverse Mortgage allows Canadians 55+ to access up to 55% of their home’s value in tax-free cash. Your clients maintain ownership of their homes and don’t have to make mortgage payments until they move or sell. Plus, they don’t have to take the full amount of the reverse mortgage they qualify for; they can access funds whenever the need for cash flow arises. These funds can then be used to meet a variety of objectives, including funding retirement lifestyles, home renovations, or debt consolidation.

Is the CHIP Reverse Mortgage a good fit for your clients? While many scenarios warrant a discussion, here are three that could prompt a discussion about the role of this flexible solution in your client’s financial plans. 

1. Your client wants to consolidate their debt.

Skyrocketing inflation has led many older Canadians to use debt, such as credit cards, to cover their expenses. Debt can be stressful at any stage in life, but in a climate of rising interest rates it can be especially challenging for Canadians 55+ who may not have a regular income and find it difficult to keep up with monthly payments. If you have clients in this situation, the CHIP Reverse Mortgage may be worth considering. Clients can access tax-free funds to consolidate their high-interest-rate debt and gain peace of mind.

2. Your client wants to maintain their desired lifestyle in retirement.

If you have clients who have recently retired, the high cost of living may be having an impact on their anticipated lifestyle. They may be experiencing a shortfall in their cash flow but want to avoid tapping into their nest egg at this early retirement stage. For clients in this situation,  the CHIP Reverse Mortgage can provide the cash flow to help them confidently pursue their retirement dreams.

3. Your client is facing unanticipated expenses.

An urgent roofing job on the house, a vehicle needing major repairs, or a large out-of-pocket medical expense can all play havoc with your client’s finances. If your client is facing a financial setback, a reverse mortgage can be used to cover the necessary costs and alleviate their stress. The flexibility of the CHIP Reverse Mortgage means they can access only the funds they need and are not required to make payments until they move or sell their home.

To learn how the CHIP Reverse Mortgage fits into your client’s financial plans, visit us online or contact a Business Development Manager today.

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