Having a home is one of the top goals for many people, not only in Canada but across the world. The home holds several fond memories and relevance. Many Canadian financial institutions align their vision towards creating an enabling environment for Canadians to enjoy home or mortgage-related services.
Perhaps you’re finding it challenging to secure a mortgage plan with your bank; you can take advantage of the exclusive products and specialized services some Canadian banks offer. HomeEquity Bank is one of Canada’s chartered banks offering mortgage and homeownership-related banking services.
Everybody wants to retire well and enjoy a post-employment life. “There’s no retirement like a home” is the bank’s motto; hence, HomeEquity Bank is famous for its unique service offered to Canadian homeowners of age 55 and above.
About HomeEquity Bank
HomeEquity Bank is a Schedule 1 Chartered bank in Canada, providing mortgage and homeownership services to Canadians. The bank’s story dates back to the establishment of the Canadian Home Income Plan Corporation in 1986 in Vancouver, BC. The company expanded its operations from this location to other Canadian provinces, including Ontario, Alberta, and more.
In 2009, the Canadian Home Income Plan Corporation changed its name to “HomEquity Bank” and became a chartered bank. By October 2009, HomEquity Bank got its recognition as a Schedule 1 Canadian bank (domestic-owned). The bank is owned by a private equity company, Birch Hill Equity Partners, which indirectly acquired all outstanding bank shares in 2012.
To better position its services and operations, HomEquity Bank changed its name to HomeEquity Bank in 2018 and adopted a redesigned logo. Since its establishment and until recently in 2018, HomeEquity Bank was the only company offering Reverse Mortgages in Canada.
HomeEquity Bank offers several financial solutions to help Canadians, especially homeowners aged 55 and above enjoy retirement. Through its Income Advantage loan and CHIP Reverse Mortgages, the bank provides safe, secure, and convenient access to financial solutions to enable its clients to access their home equity.
| Company name | HomeEquity Bank |
| Formerly | Canadian Home Income Plan Corporation |
| Website | www.homeequitybank.ca |
| Founded | 1986 (Vancouver, BC.) |
| Sector | Financial services |
| Industry | Banking |
| Headquarters | Toronto, Ontario |
| Ownership type | Privately Held |
| Parent company | Birch Hill Equity Partners |
HomeEquity Bank Products and Services
HomeEquity Bank has implemented several retirement planning options for its numerous customers across the Canadian region through specialized services tailored to meet each customer’s particular financial needs.
HomeEquity Bank offers Reverse Mortgage Solutions, Home Income Plans, Income Advantages, and GIC Investment plans. The bank provides its products and service directly to customers through a network of referral partners, including major Canadian banks, Credit Unions, Mortgage Brokers, and more.
HomeEquity Bank CHIP Reverse Mortgage
HomeEquity Bank boasts of being the leader of reverse mortgages in Canada. The CHIP Reverse Mortgage is a financial solution or loan secured against a home’s value. This retirement plan enables you to take a loan without any prepayment requirement. As a result, borrowers are only required to repay the loan when they move or sell the home. The homeowners also maintain complete ownership of the house until it is sold to repay the loan.
The CHIP (Canada Home Insurance Plan) is HomeEquity Bank’s original product since its establishment in 1986. It gives Canadian homeowners access to about 55% of their appraised value (Equity). The CHIP program is designed to cater to Canadian homeowners’ needs 55 years and older to have a befitting post-retirement.
Interestingly, when you take the CHIP Reverse Mortgage loan, you’ll have complete control over how you spend the money. Besides, the money you’ll receive is tax-free, and the remaining equity after the loan repayment is yours to keep.
As one of HomeEquity Bank’s popular products, the bank claims to have sold about $100 million of reverse mortgages to Concentra Bank in 2020.
Features
- No monthly payment is required until you decide to move or sell the home.
- Loans can be accessed in a lump sum or planned advances.
- CHIP Reverse Mortgage loan can be used for whatever you like, including home renovations and repairs, existing debts payment, healthcare expenses, travel-related expenses, and other regular expenses.
- CHIP reverse mortgage has a higher interest rate than traditional fixed-term mortgage options.
- Homeowners must ensure good property maintenance, property tax, and insurance payment.
Eligibility
CHIP Reverse Mortgage is available to:
- Canadian homeowners of age 55 and older (if you have a spouse, both of you must be 55 or older).
- The home must be your primary residence and of about $150,000 minimum home value.
HomeEquity Bank’s Income Advantage
The Income Advantage loan from HomeEquity Bank is a secured loan for Seniors or homeowners of age 55 or older. The tax-free loan is secured against your home’s value with the convenience of converting your home equity to cash without selling or moving out of your precious asset.
Apart from maintaining complete ownership and control of your home, the Income Advantage Plan also gives you the flexibility of scheduled advances of monthly or quarterly regular deposits to your bank account.
Features
- Eligible homeowners can access up to 55% of appraised home value.
- Homeowners enjoy complete ownership and control of their houses.
- It comes with the convenience of regularly scheduled advances.
- Income advantage loan is tax-free.
- Loan repayment (principal or interest) can be made at any time.
- Income Advantage is available through Canada’s major banks, credit unions, financial advisors, and mortgage brokers.
Eligibility
The Income Advantage loan is available to Canadian homeowners of 55 or older. The home must be your primary residence.
HomeEquity Bank’s CHIP Max
The CHIP Max is another reverse mortgage program from HomeEquity Bank. This product secures the loan against your home’s appraised value. With no monthly payment requirement, the CHIP Max tax-free loan can be repaid only when the homeowner decides to move out or sell the property.
Homeowners enjoy a higher percentage of home equity and access to cash for significant unforeseen expenses or debts payment. Besides, you can access the money in a lump sum or advance and use it for whatever you like. Interestingly, you’ll retain the ownership of the house throughout the loan term.
Features
- CHIP Max mortgage loan is tax-freeze.
- Homeowners enjoy access to 55% of your home’s appraised value.
- Homeowners enjoy complete requirements
- Homeowners are responsible for prompt tax payment, property maintenance, and insurance.
- Borrowers can use the loan to pay off an existing mortgage.
Eligibility
CHIP Max is available to:
- Canadian homeowners in select locations.
- Eligible homeowners, including their spouses, must be 55 years or older.
- The home must be your primary residence and at least $300,000 in value.
HomeEquity Bank CHIP Open
Another reverse mortgage loan from HomeEquity Bank is CHIP Open. Like other reverse mortgage products, this loan is secured against the home value and is designed to cater to the short-term financial needs of Canadian homeowners of age 55 or older.
CHIP Open does not require monthly mortgage payments, and you can repay the entire loan amount at any convenient time. This tax-free money gives you access to about 55% of your home’s equity. Homeowners also can convert the CHIP Open loan to a standard CHIP Reverse Mortgage at a $500 conversion fee.
Features
- Homeowners must ensure proper home maintenance, pay taxes promptly, and pay property insurance.
- Access up to 55% of your home’s appraised value.
- Use the loan for any expenses, including debt payment.
- The loan amount is tax-free.
- Homeowners retain the title and ownership of the house.
Eligibility
CHIP Open Reverse Mortgage is available to:
- Canadian homeowners of age 55 or older.
- The minimum house value is $300,000.
- The home must be the primary residence of the homeowner or loan applicant.
HomeEquity Bank GICs
One of the best retirement plans is to have a secure and reliable investment. To build a profitable portfolio, several investment options are available to Canadians, such as bonds, commodities, stocks, ETFs, and GICs.
HomeEquity Bank is particularly interested in providing ideal products for Seniors to retire well and enjoy a successful post-retirement life through its Guaranteed Investment Certificates (GIC). Through a network of independent deposit brokers and financial advisors, the bank offers Guaranteed Investment Certificates (GICs) to investors of all levels – beginners and experts. HomeEquity Bank GICs ensure guaranteed returns on your investment at competitive fixed interest rates.
Features
- Fixed interest rate throughout the investment term.
- The CDIC protects all deposits and investments up to $100,000.
- GIC terms range from one to five years.
- HomeEquity Bank GICs are non-redeemable until maturity.
- Interest rate is calculated daily and paid monthly, quarterly, semi-annually, or annually.
Note: Rates are subject to change at the discretion of the issuer. Contact the provider for current GIC rates before investing your money.
Regulations
As a Schedule 1 Chartered bank in Canada, HomeEquity Bank’s operations and services are supervised by the Superintendent of Financial Institutions (OSFI). Also, the bank is a member of the Canada Deposit Insurance Corporation (CDIC). Therefore, eligible deposits such as the GICs are protected by the CDIC up to $100,000.
Customer Service
For feedback and other products related inquiries, you can contact the HomeEquity Bank customer service via:
Email: info@heb.ca
Phone: 1-866-522-2447
Mail:
1881, Yonge Street
Suite 300
Toronto, ON
M4S 3C4
Editor’s Review
There’s no gainsaying; Canadian Seniors have a special place in the mission, operations, and services of HomeEquity Bank. If you’re a homeowner in need of quick cash or any financial need, you can take advantage of the bank’s loan offers. However, you should be cautious about their higher loan interest rates, especially when compared to some other traditional loan services.
FAQs
Which is better, a home equity loan or a reverse mortgage?
Generally, a reverse mortgage works better for someone who needs a long-term, steady income source, while a home equity loan is better for someone who needs short-term cash that they can repay.
Do I have to own a home to get a reverse mortgage?
Yes. You must either own your home outright or have a low mortgage balance. You can use your funds or money from the reverse mortgage loan to pay off your existing mortgage balance.
Can I get a second mortgage with HomeEquity Bank?
No. The bank doesn’t provide second mortgages. If you need more funds, contact the bank with an idea of the current market value of your property to ascertain if you qualify for a loan.
