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

Standard or Collateral Charge Mortgage. What’s best for you?

By Jamie Ushko • July 23, 2025
When arranging mortgage financing, your mortgage lender will register your mortgage in one of two ways. Either with a standard charge mortgage or a collateral charge mortgage. Let’s look at the differences between the two. Standard charge mortgage This is your good old-fashioned mortgage. A standard charge mortgage is the mortgage you most likely think about when you consider mortgage financing. Here, the amount you borrow from the lender is the amount that is registered against the title to protect the lender if you default on your mortgage. When your mortgage term is up, you can either renew your existing mortgage or, if it makes more financial sense, you can switch your mortgage to another lender. As long as you aren’t changing any of the fine print, the new lender will usually cover the cost of the switch. A standard charge mortgage has set terms and is non-advanceable. This means that if you need to borrow more money, you'll need to reapply and requalify for a new mortgage. So there will be costs associated with breaking your existing mortgage and costs to register a new one. Collateral charge mortgage A collateral charge mortgage is a mortgage that can have multiple parts, usually with a re-advanceable component. It can include many different financing options like a personal loan or line of credit. Your mortgage is registered against the title in a way that should you need to borrow more money down the line; you can do so fairly easily. A home equity line of credit is a good example of a collateral charge mortgage. Unlike a standard charge mortgage, here, your lender will register a higher amount than what you actually borrow. This could be for the property's full value, or some lenders will go up to 125% of your property's value. In the future, if the value of your property appreciates, with a collateral charge mortgage, you don't have to rewrite your existing mortgage to borrow more money (assuming you qualify). This will save you from any costs associated with breaking your existing mortgage and registering a new one. However, if you’re looking to switch your mortgage to another lender at the end of your term, you might be forced to discharge your mortgage and incur legal fees. Also, by registering your mortgage with a collateral charge, you potentially limit your ability to secure a second mortgage. So what’s a better option for you? Well, there are benefits and drawbacks to both. Finding the best option for you really depends on your financial situation and what you believe gives you the most flexibility. This is probably a question better handled in a conversation rather than in an article. With that said, undoubtedly, the best option is to work with an independent mortgage professional. It’s our job to understand the intricacies of mortgage financing, listen to and assess your needs, and recommend the best mortgage to meet your needs. As we work with many lenders, we can provide you with options. Don’t get stuck dealing with a single institution that may only offer you a collateral charge mortgage when what you need is a standard charge mortgage. So if you’d like to have a conversation about mortgage financing, please get in touch. It would be a pleasure to work with you and answer any questions you might have.

Make the Most of Summer: Outdoor Project Ideas for Every Space

By Jamie Ushko • July 17, 2025
Summer in Canada is short—but sweet. With warm weather and long evenings, it’s the perfect time to get outside and enjoy your outdoor space, no matter how big (or small) it is. Whether you have a tiny patio or a sprawling backyard, a few creative upgrades can go a long way toward turning your space into your personal summer oasis. Below are ideas for every type of outdoor space, from cozy balconies to large backyards! For Patio-Only Spaces Limited to a balcony or concrete patio? No problem! Small spaces can still offer big enjoyment. 1. Upgrade the Flooring Add interlocking tiles to give your concrete floor a more polished look—wood grain, grass panels, or composite styles are all popular, easy-to-install options. 2. Create an Outdoor Movie Zone Hang a pull-down screen or grab a portable stand, pair it with a mini projector, and voilà—your very own outdoor movie theatre under the stars! 3. Start an Herb Garden Railing planters are perfect for growing basil, mint, parsley, and more. Fresh herbs at your fingertips—and they smell amazing too! 4. Add Some Twinkle Wrap fairy lights around your railing or overhead beams to bring cozy vibes and nighttime charm. 5. Grill Like a Pro Maximize your BBQ season with a compact baby-que. Weber’s Q Series is a great option for small spaces without compromising grilling power. For Small Yards A little yard can still pack a lot of personality. Here are ways to make the most of every square foot: 1. Game Time! Add a mini putting green or an axe-throwing target (just be safe!) for quick bursts of backyard fun that don’t take up much space. 2. Warm Up Your Nights Add a heating lamp or portable fire bowl to keep your evenings cozy well into the fall. 3. Grow Your Own Produce Build or buy a raised garden box to grow tomatoes, cucumbers, lettuce, or other easy vegetables. Gardening is relaxing—and delicious! 4. DIY Bird Bath Make a pedestal bird bath using an old vase, a platter, and strong glue. You likely have everything you need already at home—and the local birds will thank you! For Big Yards If space isn’t an issue, the sky’s the limit! Here are some larger-scale projects to take your yard to the next level: 1. Build a Catio Yep, it’s a “cat patio”! Give your feline friends a safe way to enjoy the outdoors with a screened-in enclosure attached to your home. 2. Create a Permanent Fire Pit Use stones and a fire ring to build a beautiful, safe fire pit. You can even add airflow cutouts to reduce smoke—perfect for those marshmallow roasts! 3. Tile a Dining Area Install paving stones or tiles to define an outdoor dining space. Add a table, some string lights, and enjoy al fresco meals all summer long. Need More Inspiration? If none of these projects quite fit your vision, check out Home Depot’s DIY backyard ideas—complete with step-by-step instructions and material lists to help you bring your outdoor dreams to life. Soak It Up While It Lasts No matter the size of your space, there’s always something you can do to enhance your outdoor experience. So get out there, get creative, and make the most of these sunny summer days. See you back here in August—with more tips, tricks, and homeowner insights!