CHIP Reverse Mortgage in New Brunswick

Turn Your Home Equity Into Tax-Free Cash Without Moving or Selling

If you're a homeowner aged 55 or older, a CHIP Reverse Mortgage could help you access the equity in your home while continuing to live there. It's a simple way to unlock money for retirement, cover expenses, or enjoy life on your own terms.

At New Brunswick Mortgage Matters, we help homeowners across the province understand and apply for the CHIP Home Income Plan, Canada's leading reverse mortgage product.

What Is a CHIP Reverse Mortgage?

A CHIP Reverse Mortgage is a loan secured by the equity in your home. Unlike a traditional mortgage where you make payments to the lender, a reverse mortgage pays you.

The biggest advantage is that you don't have to make any payments (principal or interest) for as long as you or your spouse live in your home. This is why reverse mortgages have become a popular retirement solution in Canada, the United States, the United Kingdom, Australia, and other countries.

Who Qualifies for a CHIP Reverse Mortgage?

The CHIP Home Income Plan is designed for Canadian homeowners who are:

Age 55 or older (both you and your spouse must meet this requirement)
Living in your own home
Looking to access your home equity without selling or moving

You can receive up to 55% of the value of your home. The exact amount depends on:

Your age and your spouse's age
The location of your home
The type of property you own
Your home's current appraised value

We can provide a no-obligation quote to show you how much money may be available from your home.

How Can You Receive the Money?

CHIP gives you flexible options for receiving your funds:

Lump sum to receive all your eligible funds at once
Partial advances to take some now and more later
Scheduled payments to receive planned advances over a set period
Combination of a lump sum at the start with ongoing advances over time

The money you receive is tax-free and is not added to your taxable income. This means it won't affect your Old Age Security (OAS) or Guaranteed Income Supplement (GIS) benefits.

How Can You Use the Money?

You can use your CHIP funds for almost any purpose:

Supplement your retirement income
Cover unexpected expenses
Renovate or update your home
Help family members financially
Pay off existing debts
Build up your savings
Travel or enjoy retirement

The only requirement is that any existing loans secured by your home must be paid off using your CHIP funds.

Key Benefits of a CHIP Reverse Mortgage

No Monthly Payments Required
You don't make any payments while you or your spouse live in your home. The full amount only becomes due when your home is sold or when you move out.

You Keep Ownership and Control
You will never be asked to move or sell to repay your CHIP loan. You simply need to maintain your property and stay current on property taxes, home insurance, and any condo or maintenance fees.

You Keep the Remaining Equity
Based on years of experience, 99 out of 100 homeowners have money left over when their CHIP loan is repaid. On average, the remaining amount is 50% of the home's value at the time of sale.

Your Estate Is Protected
The amount to be repaid will never exceed the fair market value of your home when it is sold. If your heirs want to keep the home, they can repay the CHIP loan from other funds.

Tax-Free Funds
The money you receive does not count as taxable income and won't affect government benefits like OAS or GIS.

Potential Tax Savings
If you invest your CHIP funds in non-registered investments like GICs or mutual funds, you may be able to deduct the interest charges from the income those investments earn. Consult a financial or tax advisor for details.

Interest Rate Options

We offer both fixed and variable rate options:

Variable Rate
No fixed term required.

Fixed Rate Terms
Choose from six-month, one-year, three-year, or five-year terms.

Interest Rate Discount
If you choose to pay your full annual interest, you receive a 0.50% discount for the following year. You can pay in a single lump sum or make regular payments.

Payment Flexibility

While no payments are required, you have options:

Pay all or part of the annual accrued interest ($1,000 minimum per year) when it's convenient for you
Pay the full year's accrued interest to qualify for the 0.50% discount
Make no payments at all until the home is sold or you move out

The full amount becomes due when you and your spouse pass away, when the home is sold, or if you both move out.

You can repay the principal and interest in full at any time. If you repay within the first three years, a prepayment charge may apply. These charges may be waived or reduced in the event of death or a move to a long-term care facility or retirement residence.

Setup Costs

Appraisal Fee
Typically $175 to $400 (out-of-pocket cost). The actual amount varies by location and property type. The appraisal is ordered through CHIP.

Independent Legal Advice
Typically $300 to $600 (out-of-pocket cost). This assumes no title issues. CHIP can provide a list of legal advisors in your area if needed.

Legal, Closing, and Administrative Costs
$1,495 for all interest rate options. This amount is deducted from your CHIP funds, so it is not an out-of-pocket expense. It includes title search, title insurance, and registration.

Is a CHIP Reverse Mortgage Right for You?

A reverse mortgage can be a great solution for many homeowners, but it's not the right fit for everyone. Contact Paul Mangion and the New Brunswick Mortgage Matters team today for a free, no-obligation consultation. We'll answer your questions, provide a quote, and help you decide if a CHIP Reverse Mortgage makes sense for your situation.

Serving Homeowners Across New Brunswick

We help homeowners explore CHIP Reverse Mortgages in communities throughout New Brunswick, including:

Fredericton
Moncton
Saint John
Dieppe
Riverview
Quispamsis
Rothesay
And surrounding areas