Access your home equity to gift a down payment

HomeBridge enables Canadians to access the equity in their current home - without having to sell - to help their family purchase a home.

We’ve got the right people behind us

HomeBridge is a new division of HomeEquity BankTM working in partnership with Ontario Teachers’ Pension Plan and its venture studio, Koru. With this kind of support, you can rest assured that you’re in good hands.

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No monthly payments

HomeBridge requires no monthly mortgage payments meaning there is no impact to your cash flow or lifestyle.

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Stay in your home

There is no need to sell your home or downsize to help your family purchase their home. By accessing the equity in your current home, you get the best of both worlds.

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We put you first

We are dedicated to supporting you to help your family’s home purchase. Our team is here to answer your questions and our solution is built to provide you with a simple and trustworthy experience.

How HomeBridge compares

Select from one of the alternative gifting options (HELOC, Downsizing, Investments) to see how HomeBridge compares.

Have any questions? Check out our FAQs or contact us!

What is HomeBridge?

HomeBridge is a new, innovative solution that allows parents and grandparents to use their home equity to help their family purchase a home.

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Simple

Quickly and easily access some of the equity in your home and gift it to your family for their down payment.

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Empowering

Our mission is to empower parents and grandparents to assist their family in the home-buying journey without compromising their own lifestyle and cash flow.

Trusted

Powered by a name you trust, HomeBridge is a division of HomeEquity BankTM, provider of the CHIP Reverse Mortgage, so you can rest easy with your decision.

Frequently Asked Questions
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Have any questions? Check out our FAQs or contact us!

Your HomeBridge questions

What is HomeBridge?

HomeBridge is a division of HomeEquity BankTM that is on a mission to help parents help their children buy their first home. We do this by accessing the equity tied up in the parents' house via the CHIP Reverse Mortgage, so that they can contribute toward the home purchase.

We know how hard it is for the next generation to get into the housing market.  HomeBridge is committed to helping families solve this problem.

How does HomeBridge work?

HomeBridge provides Canadian homeowners, aged 55 and over, access to a percentage (up to 55%) of their current appraised home value.  No monthly payments are required, so HomeBridge doesn’t impact your cash flow or lifestyle. The balance is paid back at the time you move, sell your home or when the last surviving mortgage holder passes away.

HomeBridge doesn’t take any ownership in your house. You can live in your home as long as you like and you will never owe more than the sale price of your home. The CHIP Reverse Mortgage Program is a non-recourse loan which means that, at the time of repayment, you (or your estate) will never owe more than the fair market value of your home – our No Negative Equity Guarantee – as long as you have maintained your property taxes and insurance.

How does ‘no payments’ actually work?

That’s right, there are no monthly payments! This is a loan product that accrues interest, but you don’t pay the balance back until you choose to move or sell your home.

While there’s no such thing as free, your overall home equity may be higher at the time you sell your home in the future, since you may benefit from appreciation during the lifespan of the loan (dependent on market conditions). Click here to answer a few short questions to see how much you qualify for and the impact on your equity over the life of the loan.

How much will it cost me?

The actual cost of borrowing will depend on how much you need and when you pay it back, i.e. when you choose to move or sell your home. Click here to see the expected cost based on your child’s specific down payment needs.

The closing fee for most clients is $1,795, although individual circumstances do vary. The closing fee is deducted from the proceeds of the mortgage, instead of being paid out of pocket. The closing fee covers legal, administrative costs, discharging any prior mortgage and registration of the CHIP Reverse Mortgage.

Can my adult children still contribute to their own down payment?

Yes of course!  We know many parents want their kids to have some skin in the game. You can both contribute however much you are comfortable with.

How much can I gift to my adult children?

Great question.  You can get up to a maximum of 55% of your current appraised home value.  If your home is worth $1M today, you can access up to $550k.  Click here to plug in your estimated home value and find out – it’ll take less than a minute.

How do I qualify?

There are some basic eligibility requirements such as being a Canadian homeowner, age 55+, you must own your home and it must be your principal residence.

Are the loan proceeds taxable?

Nope, no tax implications here. This is one of the benefits of using this type of loan product for your child’s down payment compared to taking money out of your RRSP or another investment account, for example.

Why should I choose HomeBridge over co-signing on my family's mortgage?

Great question. In some cases co-signing on your adult children or grandchildren's mortgage can be a great option.

You are allowing a loved one to buy a home who would have otherwise been unqualified for a mortgage. You also provide peace of mind for the new homeowner as they know a co-signer will help pay the mortgage if they come up short. This can take some of the stress out of being the owner of an expensive home.

That being said, there are some risks and downsides to be aware of. You would be assuming a potentially heavy financial burden. If the primary borrower defaults, it could negatively affect the co-signer’s credit. You may experience decreased borrowing power as well. While the co-signing relationship is in effect, the co-signer may have access to less credit which can mean putting major purchases on hold for years.

Overall, co-signing is a risk the co-signer takes on as though the mortgage was directly for them. With HomeBridge, there is no risk of owing the mortgage payments if your family can’t pay; it is essentially a no-strings-attached gift you are giving your family from your home equity.

How does HomeBridge compare to my other options?

We know there are many different ways parents look to help their children purchase a home, so we created a comparison of some of the most common options. To see how HomeBridge compares, click here.

What if I have an existing mortgage?

No problem! Your existing mortgage will need to be paid off from your HomeBridge funds and then the remaining funds can be used to gift. 

What happens if I have several family members I want to support?

With HomeBridge you can leverage your home equity to help with your family's downpayment. That being said, we will share with you how much equity you can access in total and you can decide to divide that up between your children and/or grandchildren, using some now and some later. Note that taking additional funds later on may not be guaranteed and is subject to further approval.

What interest rate term options are available?

Interest rates are available in both fixed and variable terms. The variable rate will fluctuate as it is directly influenced by the Bank of Canada’s prime rate. If the Bank of Canada’s prime rate increases, for example, your interest rate will also increase. Our fixed rates are set for a predetermined timeframe and are available for a six-month, 1-year, 3-year or 5-year period. 

What if I want to pay my loan back early?

Feel free to reach out to a HomeBridge Advisor who will give you more information around opportunities to pre-pay and any pre-payment charges involved. 

Where can I find out more?

Reach out to us at support@tryhomebridge.ca or feel free to book a call with us here.