As Canada’s population ages and the need for retirement income solutions grows, reverse mortgages are becoming an increasingly attractive option for homeowners who have built significant home equity.
The numbers paint a clear picture of this shifting landscape. More than 40% of Canadian homeowners are 55 or older and three million households are expected to enter retirement over the next decade.
The opportunity
For mortgage brokers looking to grow their reverse mortgage business, building strategic partnerships with realtors brings many benefits. Realtors are often the first professionals homeowners consult when thinking about selling, downsizing, or accessing their home equity.
By working together, mortgage brokers can tap into a steady pipeline of qualified leads, while realtors can enhance their value by offering clients a wider range of flexible financing options and ultimately increasing their business opportunities.
However, some realtors may not fully understand the value and modern uses of reverse mortgages, or they may still hold outdated misconceptions about the product. Savvy brokers who position themselves as knowledgeable and reliable partners can bridge this gap and form mutually beneficial relationships.
Strategic uses of CHIP
The CHIP Reverse Mortgage from HomeEquity Bank, enables Canadian homeowners age 55+ to convert part of their home equity into tax-free cash without having to sell their homes or make monthly mortgage payments. While often used to consolidate debt or supplement retirement income, the CHIP Reverse Mortgage is increasingly being leveraged for more strategic financial planning goals.
Purchase a second property. Clients can use the funds they receive from the CHIP Reverse Mortgage to purchase a vacation home or a rental unit for investment purposes, without dipping into their registered savings or portfolios. That means no capital gains to report, no taxable withdrawals, and no disruption to their long-term investment strategy. And clients don’t need proof of income to execute this strategy, making it more accessible for retirees. In some cases, a blanket mortgage – which covers both the primary residence and the new property – could be explored as a financing strategy for those seeking greater leverage and flexibility.
- Primary business opportunity. The realtor closes the buy side on the purchase of a vacation property or rental property.
- Secondary business opportunity. Provide a solution to access the funds to purchase the second property – using the CHIP Reverse Mortgage on the principal residence to obtain the necessary funds.
Gifting a down payment on a home. First-time home buyers are increasingly relying on their families for financial support. The average gift for first-time home buyers has risen to $115,000 – an increase of 73% from 2019 levels. This makes it increasingly difficult for financially stretched families to provide support. The CHIP Reverse Mortgage can be used to provide children or grandchildren with a living inheritance to purchase their first home. By using CHIP, parents can keep their investment and retirement plans intact, without facing monthly mortgage payments or impacts on their own cash flow.
- Primary business opportunity. The realtor closes the buy side on the purchase of a home for a family member (a conventional mortgage is required for the purchaser).
- Secondary business opportunity. Provide a solution for a gifted down payment on a new home – parent or grandparent uses the CHIP Reverse Mortgage to access the funds for the down payment.
Short-term bridge financing. Clients who have found their next dream home may need additional time before selling their existing home – perhaps to renovate and attract a higher price or just to manage the move better and reduce stress. CHIP Open by HomeEquity Bank is a reverse mortgage solution designed for short-term financing. It allows clients to access the equity in their home and turn it into tax-free cash without having to make monthly payments. After their home sells, clients can repay the full amount on their CHIP Open – without incurring prepayment penalties.
- Primary business opportunity. The purchase of a new home before selling the existing home.
- Secondary business opportunity. Provide a short-term bridge financing solution to access tax-free funds needed for a down payment on a new home using the CHIP Open. After the existing home sells, the loan can be paid back without prepayment penalties.
These are just a few ways you can help realtors enhance their value and close more deals by offering their clients flexible financing options.
3 easy steps you can take today
- Organize a realtor information session. Partner with one of our Business Development Managers (BDMs) to set up an information session with local realtors.Your BDM will help you connect with the right realtors and prepare your presentation, focusing on the CHIP Reverse Mortgage and its strategic planning uses.
- Co-host an open house with realtors. Team up with realtors to co-host an open house to share CHIP marketing materials. HomeEquity Bank’s Partner Launchpad, gives you access to a suite of professionally designed, customizable, and ready-to-use materials, including newsletters, emails, and social posts. These events are also great opportunities to address myths and misconceptions about reverse mortgages.
- Review your existing client list. Take a fresh look at your database with support from your HomeEquity Bank BDM or BDA, who can help uncover overlooked opportunities. One broker aiming to expand her reverse mortgage business discovered a wealth of potential partnerships right in her backyard – literally. Her BDM suggested she talk with her husband, a seasoned realtor with deep local ties. The BDM then delivered a targeted presentation to him and his colleagues, opening the door to a pipeline of referral opportunities already within reach.
Longer-term benefits
Building partnerships with realtors may take some time and effort, but the long-term payoff can be significant. These relationships can generate a stream of warm leads, boost your visibility, and position you as a trusted expert in the reverse mortgage space. Plus, you’ll be helping Canadians make more informed financial decisions about their homes.
Partnering with HomeEquity Bank
For over 37 years, HomeEquity Bank has been dedicated exclusively to serving Canadians age 55+ with reverse mortgage solutions, like the CHIP Reverse Mortgage. As the only bank in Canada specializing in this demographic, we offer unparalleled expertise and trust.
To learn more about CHIP, contact your HomeEquity Bank BDM or BDA or visit chipadvisor.ca. You can also access a webinar on growing your reverse mortgage business through realtor partnerships by visiting chipadvisor.ca/webinars/.
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Last modified: June 5, 2025
