Reverse Mortgages in Alberta Unlock Your Home Equity Without Selling.
Reverse mortgages in Alberta can help homeowners age 55+ access equity from their home without selling or making required regular mortgage payments. NOW Mortgage arranges CHIP Reverse Mortgages through HomeEquity Bank and, when CHIP alone does not meet the full financing need, we may also be able to explore additional in-house lending options.
What Is a Reverse Mortgage?
A reverse mortgage is a loan secured against your home that allows eligible homeowners to convert part of their home equity into cash without selling the property.
For homeowners researching reverse mortgages in Alberta, the major difference from a conventional mortgage is that regular principal and interest payments generally are not required. Instead, interest accrues and is added to the outstanding mortgage balance over time.
You continue to own and live in your home, provided the obligations of the mortgage are maintained. These generally include keeping the property in good condition and keeping property taxes and insurance current.
For an independent consumer overview, visit the Financial Consumer Agency of Canada’s guide to reverse mortgages .
How Reverse Mortgages Work
The concept is straightforward: instead of selling the home to access your equity, an eligible homeowner borrows against part of that equity.
Who May Qualify for Reverse Mortgages in Alberta?
Reverse mortgage qualification is different from conventional mortgage financing because the property, available equity and age of the homeowners are major parts of the lending decision.
Age 55+
HomeEquity Bank’s CHIP products are designed for Canadian homeowners age 55 or older. Where there are two homeowners, both must satisfy the applicable age requirements.
Primary Residence
The property securing a CHIP Reverse Mortgage must meet HomeEquity Bank’s primary residence and property eligibility requirements.
Property Value
The home’s appraised value is a major factor in determining the amount of reverse mortgage financing that may be available.
Property Location
Location matters. Properties in Edmonton, Calgary and other Alberta communities may produce different lending outcomes based on lender criteria.
Existing Mortgage
Having an existing mortgage does not automatically prevent qualification. Existing secured debt is reviewed and normally addressed as part of the transaction.
Available Equity
The final amount depends on the complete application, appraisal and HomeEquity Bank’s current underwriting criteria.
What If the CHIP Reverse Mortgage Alone Is Not Enough?
This is where working with NOW Mortgage can create an additional financing option. We arrange CHIP Reverse Mortgages through HomeEquity Bank while also having access to our own in-house equity-based lending solutions.
1. CHIP Reverse Mortgage
We first determine the reverse mortgage amount that may be available through HomeEquity Bank based on their current underwriting requirements.
2. Potential In-House Top-Up
If additional financing is required and sufficient equity remains, NOW Mortgage may be able to explore supplementary in-house financing as part of the overall solution.
Additional financing is not guaranteed. All financing is subject to available equity, property review, underwriting, applicable lender consent or priority requirements, rates, fees and final approval.
How Much Can You Get From a Reverse Mortgage?
HomeEquity Bank advertises access to up to 55% of an eligible home’s appraised value through CHIP. “Up to” is important — every homeowner does not automatically qualify for the maximum.
What Does a Reverse Mortgage Cost?
Eliminating required regular mortgage payments can improve monthly cash flow, but it does not eliminate borrowing costs. The interest continues to accrue.
Interest Accumulates
Interest is charged on the outstanding balance and is generally added to the mortgage instead of being paid through required monthly mortgage payments.
Your Equity Changes Over Time
As the mortgage balance grows, the amount of remaining equity in your home may decrease. Changes in the home’s market value can also affect the equity remaining.
Closing Costs May Apply
Depending on the transaction, costs can include appraisal, legal, lender and other closing expenses.
Repayment Rules Matter
Reverse mortgages have their own prepayment and repayment terms. Those conditions should be understood before proceeding.
What Could This Look Like for an Alberta Homeowner?
Here’s a simple example of the type of situation in which a reverse mortgage may be explored. It is not a quote, approval or actual client file.
Example: Retired Alberta Homeowner
The homeowner wants to eliminate their existing monthly mortgage payment, complete needed home repairs and maintain a financial reserve for unexpected expenses.
A CHIP Reverse Mortgage could potentially be used to repay the existing mortgage and provide additional funds, depending on the amount HomeEquity Bank approves.
If the approved CHIP amount does not fully satisfy the homeowner’s financing requirement, NOW Mortgage could then review whether a separate in-house lending solution may be available based on the remaining equity and complete application.
Benefits and Important Considerations
Potential Benefits
- Access home equity without immediately selling your home.
- No required regular principal and interest mortgage payments.
- Remain the owner of your home.
- Use borrowed funds for a wide variety of purposes.
- Borrowed reverse mortgage funds are generally not taxable income.
- Reverse mortgage proceeds generally do not affect OAS or GIS benefits.
- Qualification works differently than a conventional mortgage.
- NOW Mortgage may have another lending option when additional funds are needed.
Important Considerations
- Interest accumulates and increases the mortgage balance.
- The equity remaining in the home may decrease over time.
- Rates may be higher than conventional secured borrowing options.
- Less home equity may remain for your estate or beneficiaries.
- Prepayment and repayment terms apply.
- Property taxes and home insurance must remain current.
- The property must continue to satisfy applicable lender requirements.
Reverse Mortgage vs. Other Home Equity Options
Reverse mortgages in Alberta are one way to access home equity. Depending on the homeowner, refinancing, a HELOC or another equity-based loan may also deserve consideration.
| Feature | Reverse Mortgage | Traditional Refinance | HELOC | Equity / Private Lending |
|---|---|---|---|---|
| Regular Payments | Generally not required | Required | Usually required | Depends on structure |
| Age Requirement | 55+ for CHIP | No special age requirement | No special age requirement | No special age requirement |
| Income Qualification | Different from conventional lending | Important | Important | May place greater emphasis on equity |
| Interest Paid Monthly | Generally no | Yes | Usually yes | Depends on structure |
| Home Equity | Balance typically grows over time | Balance generally reduces with payments | Depends on borrowing and repayment | Depends on structure |
| Potential Fit | 55+ homeowners seeking equity access without required regular mortgage payments | Borrowers who qualify conventionally | Borrowers wanting revolving equity access | Situations requiring flexible equity-based financing |
Reverse Mortgages for Edmonton Homeowners
NOW Mortgage helps homeowners explore reverse mortgages in Alberta, including Edmonton and surrounding communities.
Property location can affect reverse mortgage eligibility and the amount a lender is prepared to advance. This is why an Edmonton homeowner’s result may differ from the result for a similar property somewhere else in the province.
Our job is to help you understand the complete financing picture: the CHIP amount that may be available, the cost of borrowing, how the balance can change over time and whether another financing option should also be considered.
- Paying off an existing mortgage or other debt
- Reducing required monthly debt payments
- Funding home repairs or accessibility improvements
- Creating additional retirement cash flow
- Covering unexpected expenses
- Remaining in the home instead of immediately downsizing
When Might a Reverse Mortgage Make Sense?
The important question is not simply whether you qualify. It is whether the financing solves a real problem while fitting your longer-term plans.
Improve Monthly Cash Flow
Paying out an existing mortgage or other debt may reduce required monthly payments and create more room in a fixed retirement budget.
Stay in Your Home
Homeowners who want to age in place may prefer to access equity rather than sell solely to free up cash.
Fund Major Expenses
Home repairs, accessibility modifications, healthcare costs or unexpected expenses can create a need for liquidity.
Income Is the Challenge
Some homeowners have substantial equity but may not qualify for the conventional mortgage amount they want based on retirement income.
Preserve Other Assets
Some homeowners prefer to examine their home equity before deciding whether to sell investments or other assets. Tax and investment implications should be discussed with the appropriate professional.
You Need More Flexibility
Where CHIP alone does not solve the complete financing requirement, our ability to review an additional equity-based solution may create another path.
Reverse Mortgage Questions Alberta Homeowners Ask
These are some of the most common questions we hear from people researching reverse mortgages in Alberta.
Do I still own my home with a reverse mortgage?
Yes. You remain the homeowner. The reverse mortgage is secured against the property, and you remain responsible for complying with the conditions of the mortgage agreement.
Can I get a reverse mortgage if I still have a mortgage?
Potentially. An existing mortgage does not automatically prevent you from obtaining a reverse mortgage. Existing secured debt is reviewed and generally must be addressed through the transaction.
Do I need to make monthly mortgage payments?
CHIP Reverse Mortgages generally do not require regular principal and interest mortgage payments. Interest accrues and is added to the outstanding balance instead.
How much can I borrow with CHIP?
HomeEquity Bank currently advertises access to up to 55% of the home’s appraised value. The amount available to you depends on your specific application, including age, property, location and existing secured debt.
Can I use the money for anything I want?
Reverse mortgage proceeds can generally be used for many purposes, including repaying debt, renovations, living expenses or other financial needs, subject to the lender’s terms and any amounts required to discharge existing secured obligations.
Does reverse mortgage money affect OAS or GIS?
The Financial Consumer Agency of Canada states that reverse mortgage proceeds do not affect Old Age Security or Guaranteed Income Supplement benefits. Individual tax or benefit questions should still be reviewed with the appropriate professional.
What happens when I sell my home?
The outstanding reverse mortgage is generally repaid when the home is sold, in accordance with the lender’s mortgage terms.
What happens to the reverse mortgage when I die?
The outstanding mortgage becomes repayable according to the lender’s terms. Estate representatives should review the required repayment process and timelines with the lender and legal counsel.
Can a reverse mortgage be paid off early?
Yes, but prepayment terms and possible charges depend on the specific product and timing. Those terms should be reviewed before choosing the mortgage.
Can NOW Mortgage provide additional financing beyond CHIP?
In some situations, yes. If a CHIP Reverse Mortgage does not fully meet the financing requirement and sufficient equity remains, NOW Mortgage may be able to review a separate in-house lending solution. This is subject to underwriting, available equity, priority or consent requirements and final approval.
Is a reverse mortgage right for every homeowner over 55?
No. A reverse mortgage can improve cash flow and provide access to home equity, but the loan balance grows over time. A refinance, HELOC, equity loan, downsizing or another strategy may be more appropriate depending on the homeowner’s situation.
We’re Looking at the Financing Problem — Not Just One Product.
Our reverse mortgage business is placed through HomeEquity Bank, but our job is to help determine how the overall financing structure fits your situation.
That distinction becomes especially important when a homeowner has enough overall equity but a CHIP Reverse Mortgage by itself does not fully satisfy the financing requirement.
More Reverse Mortgage Resources
If you’re still researching reverse mortgages in Alberta, these guides answer two of the questions homeowners ask most often.
See What Your Home Equity Could Make Possible.
Tell us what you’re trying to accomplish. We can review the property, your financing needs and whether a CHIP Reverse Mortgage — with or without an additional lending solution — may fit your situation.
Start a Conversation →This page provides general information only and is not legal, financial or tax advice. Reverse mortgage eligibility, available loan amounts, interest rates, fees and terms are subject to lender criteria and may change. CHIP Reverse Mortgage products are offered by HomeEquity Bank. Additional NOW Mortgage lending solutions are separate financing products and are subject to available equity, property review, underwriting, applicable lender consent or priority requirements, rates, fees and final approval. Product information should be confirmed at the time of application. Consider obtaining independent legal, tax and financial advice appropriate to your circumstances.
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