CHIP Reverse Mortgage Reviews 2026: An Independent Analysis (From Someone Who Uses All Three Lenders)

You have seen the CHIP ads. Maybe you have already spoken with someone at HomeEquity Bank. Now you want a second opinion from someone who does not work for them.

The Trustpilot reviews will not give you that. Glowing customer service ratings and "is this the right product for me at this rate" are two completely different questions, and they almost never appear in the same place.

This is an independent review. I place clients with all three Canadian reverse mortgage lenders on actual files. Here is what the math says, what CHIP gets right, what the rate comparison looks like, and the one number that no CHIP review I have read puts front and centre.

What is the CHIP reverse mortgage?

You almost certainly know the basics already, so this will be brief. CHIP (Canadian Home Income Plan) is HomeEquity Bank's reverse mortgage product. It was the first reverse mortgage offered in Canada and remains by far the largest, partly by merit and partly by a decades-long head start on brand awareness.

The mechanics: a homeowner aged 55 or older borrows against their home's equity. No monthly mortgage payments are required. Interest accrues monthly, compounds, and is added to the loan balance. The full balance comes due when the last borrower on title sells the home, moves out permanently, or dies. There is no income or credit score requirement. The home stays in your name throughout.

What makes CHIP worth reviewing specifically (rather than "reverse mortgages generally"): HomeEquity Bank goes direct to consumers and runs significant advertising. Most Canadians researching a reverse mortgage start with CHIP by name. That gives it an outsized influence on what people think a reverse mortgage costs and how it works, which is exactly why an independent review matters.

For a full explanation of how reverse mortgages work in Canada, including the four-lender landscape and the alternatives every senior should consider first, see our complete reverse mortgage guide.

CHIP reverse mortgage rates in 2026: what you will actually pay

Here are the current CHIP rates. These are published rates as of mid-2026 and are subject to change.

Rates illustrative for 2026. Actual rate offered depends on loan amount, property type, and term selected. Interest compounds monthly and is added to the outstanding balance, not paid in cash.

The reason CHIP's rate is higher than a regular mortgage is structural, not arbitrary. The no-monthly-payment feature means the lender's exposure grows every month rather than shrinking. The expected hold period is long and unpredictable (5 years or 25 years, depending on the borrower's health and circumstances). And the no-negative-equity guarantee the lender writes against falling home prices costs real money that is built into the spread. These are the three mechanics that produce a rate roughly 2 to 2.5 percentage points above a regular residential mortgage.

None of that is a criticism of CHIP specifically. It is the structure of the product. Equitable Bank's reverse mortgage has the same structural reasons for a higher-than-normal rate. The question is whether the CHIP rate within that structure is the best available.

CHIP vs Equitable Bank vs Bloom

: side-by-side comparison

My opinion, stated early and defended throughout this review: CHIP is a legitimate product with genuine use cases. It is also the most expensive of the three primary options in most file scenarios. The rate gap versus Equitable Bank is large enough that choosing CHIP without comparing is the single most expensive mistake in this category.

Here is the side-by-side. Numbers are approximate as of mid-2026 and will vary by specific file.

LTV ranges and fees are illustrative. Actual offers vary by file. Independent legal advice is required by Canadian law for all three lenders; the $500-$900 cost is your lawyer's fee, not the lender's.

The number that matters most in this table: the approximately 0.7% rate gap between CHIP and Equitable Bank on the 5-year fixed. Run the math on a $300,000 reverse mortgage balance at that rate gap:

• 0.7% on $300,000 = approximately $2,100 in additional interest per year.
• Over 10 years, compounding modestly, that gap reaches approximately $21,000 in additional interest paid.
• On a $400,000 balance, the 10-year gap is approximately $28,000.
• On a $500,000 balance, approximately $35,000.

That is the number no CHIP review I have seen writes down plainly.¹

CHIP reverse mortgage pros: where it genuinely earns its reputation

CHIP is the market leader for reasons that are partly structural and partly genuine product strength. Here is what it gets right.

No monthly mortgage payments. The defining feature of the product. For a retiree on a fixed CPP, OAS, and pension income who cannot qualify for a HELOC, the ability to access home equity without adding a monthly debt obligation is not a convenience, it is the entire point. CHIP delivers this reliably.

No income or credit score requirements. Approval is based on age, home value, and property location. A 72-year-old with $800,000 of home equity and no income beyond OAS can qualify when every bank and credit union has declined them. This serves a real population of Canadians in a way that no other regulated product does.

Tax-free proceeds. Funds received from a reverse mortgage are loan proceeds, not income. They do not trigger income tax, do not affect OAS clawback calculations, and do not impact GIS eligibility. For seniors managing income-tested benefits, this is a meaningful planning advantage over cashing out RRSPs or RRIF accounts.

You stay on title and retain ownership. The persistent misconception that a reverse mortgage transfers ownership of your home is false. You remain the registered owner. You can renovate, rent a basement, add a family member to title, or sell the property without needing the lender's permission.

Flexible disbursement options. CHIP offers lump sum, scheduled monthly drawdowns, or a combination. The scheduled drawdown option is underused and often better: interest compounds only on what has been advanced, not on the full approved amount. A $200,000 CHIP facility with $10,000 monthly drawdowns will cost substantially less in total interest than a $200,000 lump sum over the same period.

No-negative-equity guarantee. HomeEquity Bank guarantees that neither you nor your estate will ever owe more than the proceeds from the sale of your home, even if the balance has compounded past the home's value. This protection is real, it is built into the product structure, and it is available from all three Canadian reverse mortgage lenders.

National distribution and longevity. CHIP has been operating in Canada since 1986. The processes are well-established, the documentation is clear, and the product has been through multiple real estate cycles. For some borrowers, the certainty of a 40-year-old institution matters more than a 0.7% rate gap.

CHIP reverse mortgage cons: the numbers most reviews skip

The criticisms below are not reasons to avoid reverse mortgages as a category. They are reasons to go in with eyes open and to compare before committing.

The rate is higher than alternatives, and higher than Equitable Bank. At approximately 7.24% on the 5-year fixed (2026), CHIP runs about 2 to 2.5 percentage points above a regular mortgage and approximately 0.7% above Equitable Bank's product. As shown above, that 0.7% gap compounds to approximately $21,000 over 10 years on a $300,000 balance. The rate premium over a regular mortgage reflects the product structure (legitimate). The premium over Equitable Bank is simply a pricing difference that can be avoided by shopping.

Interest compounds silently. Because no payments are required, most borrowers do not track the balance growth month to month. A $250,000 CHIP reverse mortgage at 7.24% that runs for 12 years without any voluntary interest payments will grow to approximately $600,000 at maturity. That is not a flaw, it is arithmetic. But it is arithmetic that surprises families at estate settlement more than any other feature of this product.

Setup costs are sunk regardless of hold period. Total costs of $2,500 to $4,200 are paid at closing. If you sell within two to three years, those costs represent a significant percentage of the total interest paid and need to be part of the break-even calculation before you sign.

Early exit penalties can be substantial. If you repay the CHIP reverse mortgage before the term ends (for example, because you decide to sell sooner than expected), prepayment penalties apply. The calculation is similar to regular mortgage prepayment fees and can amount to several thousand dollars. If there is any chance you will sell within the term, this needs to be in front of you before choosing a 5-year term.

Maintenance obligations remain yours. Property taxes, home insurance, and maintenance of the property in reasonable condition are not optional throughout the life of a CHIP reverse mortgage. Failure to pay property taxes or maintain insurance is a default trigger that can lead to the lender paying on your behalf and adding it to your balance, or in extreme cases forcing a sale. This is the same for all three lenders. It is also the source of most of the genuinely difficult reverse mortgage outcomes in Canada.

Estate impact is rarely discussed at the point of sale. The balance compounding over time reduces the equity available to your estate. Most adult children do not know a reverse mortgage exists on the family home until the estate settlement process begins. The solution is a five-minute conversation with your family before you sign, not a product design change. But it is a conversation that does not happen as often as it should.

Going direct means one set of numbers. Applying to CHIP directly gives you one offer. A licensed mortgage agent can apply to CHIP, Equitable Bank, and Bloom simultaneously, with your consent, and present all three numbers on the same file. The rate gap may be worth $21,000 to you over 10 years. It is also possible the CHIP offer comes in better on a specific file type. You cannot know without comparing.

What Trustpilot reviews tell you (and what they cannot)

CHIP's Trustpilot profile has over 2,300 reviews with an average rating of 4.7 stars as of 2026. That is a genuinely good customer service score. Most of the positive reviews describe a smooth application process, responsive staff, and a quick closing timeline.

None of that tells you whether CHIP was the right financial product for the borrower, whether the rate was competitive, whether Equitable Bank would have been cheaper on the same file, or how the compound interest will affect the estate in 15 years. Customer service experience and financial outcomes are two separate questions. The Trustpilot reviews answer the first one. They are completely silent on the second.

This is not a criticism of CHIP's customer service scores. It is a note on what review platforms measure. A smooth experience signing a contract is not the same as a correct financial decision. The correct financial decision requires rate comparison, alternative analysis, and a conversation with your family. Trustpilot cannot give you any of those.

Who should actually choose CHIP?

CHIP makes most sense in four specific situations.

You need the widest distribution network. In some smaller Ontario markets and rural areas, CHIP has stronger appraiser relationships and faster closing infrastructure than Equitable Bank. If speed or local access genuinely matters on your file, that is a real CHIP advantage.

You want the most flexible scheduled drawdown structure. CHIP's drawdown product (receiving a set amount monthly rather than a lump sum) is well-established and straightforward to administer. If you want a structured monthly income supplement rather than a one-time lump sum, CHIP's drawdown product is worth comparing directly against Bloom, which also specializes in this structure.

CHIP comes in more competitive on your specific file type. Rates and approvals are file-specific. A particular property type, postal code, or age combination may produce a tighter gap between CHIP and Equitable Bank than the general 0.7% differential. The only way to know is to run both applications and compare the actual offers.

The rate gap has been calculated and accepted. If you have run the numbers, you know CHIP will cost approximately $X more over your expected hold period, and you are choosing CHIP anyway for reasons of distribution, process familiarity, or existing relationship, that is a legitimate and informed decision. The problem is not choosing CHIP. The problem is choosing CHIP before you know what the gap is.

When to say no to CHIP (and possibly to any reverse mortgage)

Here is the honest version of when to walk away.

• You can qualify for a HELOC. At approximately prime + 0.5% (around 4.95% in 2026), a HELOC is roughly 2.3 percentage points cheaper than CHIP. If your income qualifies, the HELOC is almost always the better answer. Apply for the HELOC first. If it is declined for income reasons, then the CHIP conversation starts to make sense.
• You are planning to sell within two to three years. The $2,500 to $4,200 in setup costs, combined with a possible exit penalty, makes a short hold period expensive. Run the all-in cost for your specific timeline before signing.
• You have not told your adult children yet. This is not a financial reason. It is a practical one. The most common painful outcome in reverse mortgage estate settlements is adult children discovering the balance for the first time after death. Have the conversation before you close, not after.
• You have not compared Equitable Bank on the same file. This applies regardless of how good the CHIP representative was on the phone. One offer is not a market. Get the second number first.

For a broader look at the alternatives to consider before any reverse mortgage, including HELOC, refinancing, and downsizing with specific dollar estimates, see our HELOC vs refinancing comparison and the Ontario-specific reverse mortgage rules guide.

How to get an independent reverse mortgage analysis in Ontario

The practical process if you want a real comparison before committing to CHIP:

1. Pull a property appraisal or use an existing one. An updated appraisal (approximately $300 to $500) is required by any reverse mortgage lender before approval. If you have had one done recently, it may be usable across lenders.
2. Work with a licensed mortgage agent who holds lender relationships with all three. A mortgage agent who can apply to CHIP, Equitable Bank, and Bloom simultaneously will show you the actual approved rates and proceeds for your file side by side. This takes roughly the same amount of time as going directly to CHIP and produces a real comparison rather than a single data point.
3. Ask for the full cost of borrowing over your expected hold period. Not just the stated rate. Not just the APR. Ask for a projection of what the balance will be in 5, 10, and 15 years at the offered rate, given your intended borrowing amount. That projection will show you the compounding effect more clearly than any rate table.
4. Get independent legal advice before signing anything. Canadian law requires this, and it applies to all three lenders. Your lawyer is the one person in the transaction the lender does not pay. Use the appointment as an opportunity to ask questions you did not ask the lender.
5. Tell your family. Before you close, not after.

Ontario-specific rules, including the 10-day cooling-off period after closing, are covered in detail in our reverse mortgage Ontario guide.

FAQ: CHIP reverse mortgage reviews 2026