Tapping into Home Equity: Why Choose a Reverse Mortgage Over a HELOC?

Jamie Ushko • August 30, 2023

In an era where the cost of living is on the rise, securing a comfortable retirement and maintaining your desired lifestyle can pose significant challenges. Fortunately, for many retired Canadians, a valuable asset lies at their disposal: home ownership. Leveraging the equity you've built in your home can be the key to obtaining the additional funds you need to make the most of your retirement years.

Tapping into Your Home Equity

If you're committed to staying in your current home, there are two popular methods to access your home equity: the Home Equity Line of Credit (HELOC) and the reverse mortgage.

HELOC: HELOC lenders typically permit homeowners to access up to 65% of their home's value. With a HELOC, you can borrow funds as needed, based on an agreed-upon amount, and you'll only need to make minimum monthly interest payments. Unlike a traditional mortgage, there are no fixed scheduled payments towards the loan's principal, providing you with the flexibility to repay the loan at your convenience.

Reverse Mortgage: Another prevalent way homeowners tap into their home equity is through a reverse mortgage. Specifically, the CHIP Reverse Mortgage by HomeEquity Bank is tailored for Canadian homeowners aged 55 and above. It allows you to access up to 55% of your home's value, receiving the funds as tax-free cash, all without the need to move or sell your property. What's more, you won't have to worry about required monthly mortgage payments while you continue to reside in your home. The full loan amount only becomes due when you decide to move, sell the house, or through the estate after the homeowner's passing.



The Advantages of the CHIP Reverse Mortgage

The CHIP Reverse Mortgage offers numerous benefits, with one of the most significant being the absence of monthly mortgage payments. This feature is especially valuable for Canadians aged 55+ when managing cashflow can be a concern. Here are some additional benefits of the CHIP Reverse Mortgage:

  • Simplified Underwriting: The CHIP Reverse Mortgage caters to Canadians aged 55+ who rely on a fixed income and might face challenges qualifying for a HELOC.
  • No Need to Requalify: Unlike a HELOC that requires continuous credit score checks, the CHIP Reverse Mortgage eliminates the need for requalification, ensuring access to funds without credit score barriers.
  • Surviving Spouse Protection: With a HELOC, the passing of a spouse may prompt the bank to conduct a credit score review of the surviving spouse. With the CHIP Reverse Mortgage, the loan doesn't become due until after both homeowners no longer live in the home.
  • Fixed-Term Rate Options: The CHIP Reverse Mortgage provides fixed rate choices, allowing borrowers to lock in rates for up to five years. In contrast, a HELOC's interest rate fluctuates with the Bank of Canada's prime rate, potentially leading to increased borrowing costs in times of rising interest rates.


Ready to Unlock Your Home Equity? Contact Us Today!

Are you ready to explore how the CHIP Reverse Mortgage can help you tap into your home equity and secure your financial future? Don't hesitate to get in touch with us today. We're here to provide expert guidance and answer any questions you may have.

In a world where financial peace of mind is priceless, the CHIP Reverse Mortgage offers a reliable path to unlock your home's hidden potential and ensure a comfortable retirement. Contact us to take the first step toward securing your financial freedom!


Jamie Ushko

Mortgage Broker

By Jamie Ushko January 28, 2026
Bank of Canada maintains policy rate at 2¼%. FOR IMMEDIATE RELEASE Media Relations Ottawa, Ontario January 28, 2026 The Bank of Canada today held its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. The outlook for the global and Canadian economies is little changed relative to the projection in the October Monetary Policy Report (MPR). However, the outlook is vulnerable to unpredictable US trade policies and geopolitical risks. Economic growth in the United States continues to outpace expectations and is projected to remain solid, driven by AI-related investment and consumer spending. Tariffs are pushing up US inflation, although their effect is expected to fade gradually later this year. In the euro area, growth has been supported by activity in service sectors and will get additional support from fiscal policy. China’s GDP growth is expected to slow gradually, as weakening domestic demand offsets strength in exports. Overall, the Bank expects global growth to average about 3% over the projection horizon. Global financial conditions have remained accommodative overall. Recent weakness in the US dollar has pushed the Canadian dollar above 72 cents, roughly where it had been since the October MPR. Oil prices have been fluctuating in response to geopolitical events and, going forward, are assumed to be slightly below the levels in the October report. US trade restrictions and uncertainty continue to disrupt growth in Canada. After a strong third quarter, GDP growth in the fourth quarter likely stalled. Exports continue to be buffeted by US tariffs, while domestic demand appears to be picking up. Employment has risen in recent months. Still, the unemployment rate remains elevated at 6.8% and relatively few businesses say they plan to hire more workers. Economic growth is projected to be modest in the near term as population growth slows and Canada adjusts to US protectionism. In the projection, consumer spending holds up and business investment strengthens gradually, with fiscal policy providing some support. The Bank projects growth of 1.1% in 2026 and 1.5% in 2027, broadly in line with the October projection. A key source of uncertainty is the upcoming review of the Canada-US-Mexico Agreement. CPI inflation picked up in December to 2.4%, boosted by base-year effects linked to last winter’s GST/HST holiday. Excluding the effect of changes in taxes, inflation has been slowing since September. The Bank’s preferred measures of core inflation have eased from 3% in October to around 2½% in December. Inflation was 2.1% in 2025 and the Bank expects inflation to stay close to the 2% target over the projection period, with trade-related cost pressures offset by excess supply. Monetary policy is focused on keeping inflation close to the 2% target while helping the economy through this period of structural adjustment. Governing Council judges the current policy rate remains appropriate, conditional on the economy evolving broadly in line with the outlook we published today. However, uncertainty is heightened and we are monitoring risks closely. If the outlook changes, we are prepared to respond. The Bank is committed to ensuring that Canadians continue to have confidence in price stability through this period of global upheaval. Information note The next scheduled date for announcing the overnight rate target is March 18, 2026. The Bank’s next MPR will be released on April 29, 2026. Read the January 28th, 2026 Monetary Report
By Jamie Ushko January 21, 2026
Thinking of Calling Your Bank for a Mortgage? Read This First. If you're buying a home or renewing your mortgage, your first instinct might be to call your bank. It's familiar. It's easy. But it might also cost you more than you realize—in money, flexibility, and long-term satisfaction. Before you sign anything, here are four things your bank won’t tell you—and four reasons why working with an independent mortgage professional is the smarter move. 1. Your Bank Offers Limited Mortgage Options Banks can only offer what they sell. So if your financial situation doesn’t fit neatly into their guidelines—or if you’re looking for competitive terms—you might be out of luck. Working with a mortgage broker? You get access to mortgage products from hundreds of lenders : major banks, credit unions, monoline lenders, alternative lenders, B lenders, and even private funds. That means more options, more flexibility, and a much better chance of finding a mortgage that fits you. 2. Bank Reps Are Salespeople—Not Mortgage Strategists Let’s be honest: most bank mortgage reps are trained to sell their employer’s products—not to analyze your financial goals or tailor a long-term mortgage plan. Their job is to generate revenue for the bank. Independent mortgage professionals are different. We’re not tied to one lender—we’re tied to you. Our job is to shop around, negotiate on your behalf, and recommend the mortgage that offers the best balance of rate, terms, and flexibility. And yes, we get paid by the lender—but only after we find you a mortgage that works for your situation. That creates a win-win-win: you get the best deal, we earn our fee, and the lender earns your business. 3. Banks Don’t Lead with Their Best Rate It’s true. Banks often reserve their best rates for those who ask for them—or threaten to walk. And guess what? Most people don’t. Over 50% of Canadians accept the first renewal offer they get by mail. No questions asked. That’s exactly what the banks count on. Mortgage professionals don’t play that game. We start by finding lenders offering competitive rates upfront, and we handle the negotiations for you. There’s no guesswork, no pressure, and no settling for less than you deserve. 4. Bank Mortgages Are Often More Restrictive Than You Think Not all mortgages are created equal. Some come with hidden traps—especially around penalties. Ever heard of a sky-high prepayment charge when someone breaks their mortgage early? That’s often due to something called an Interest Rate Differential (IRD) —and big banks are notorious for using the harshest IRD calculations. When we help you choose a mortgage, we don’t just focus on the interest rate. We look at the whole picture, including: Prepayment privileges Penalty calculations Portability Future flexibility That way, if your life changes, your mortgage won’t become a financial anchor. A Quick Recap What your bank typically offers: Only their own limited mortgage products Sales-focused representatives, not mortgage strategists Default rates that aren’t usually their best Restrictive contracts with high penalties What an independent mortgage professional delivers: Access to over 200 lenders and customized mortgage solutions Personalized advice and long-term financial strategy Competitive rates and terms upfront Transparent, flexible mortgage options designed around your needs Let’s Talk Before You Sign Your mortgage is likely the biggest financial commitment you’ll ever make. So why settle for a one-size-fits-all solution? If you're buying, refinancing, or renewing, I’d love to help you explore your options, explain the fine print, and find a mortgage that truly works for you. Let’s start with a conversation—no pressure, just good advice.