No Negative Equity Guarantee

Jamie Ushko • August 1, 2023

In the quest for a secure retirement, many Canadians consider leveraging their home equity through a reverse mortgage as part of their financial strategy. Yet, a common question that arises in this context is whether they risk owing more than their home is worth.


The simple answer to this concern is a reassuring "NO."


The CHIP Reverse Mortgage, offered by HomeEquity Bank, is carefully designed with built-in safeguards to protect your home and your equity. One of the critical features ensuring your peace of mind is the No Negative Equity Guarantee*.


Understanding the No Negative Equity Guarantee

So, what exactly does the No Negative Equity Guarantee entail?

Put plainly, it ensures that, as long as you fulfill your property tax and mortgage obligations, HomeEquity Bank guarantees that the amount you owe on the due date will never exceed the fair market value of your home. Even if your home's value decreases over time, and the mortgage amount due surpasses the gross proceeds from selling the property, you can rest easy knowing that HomeEquity Bank steps in to cover the difference between the sale price and the loan amount.

This robust guarantee acts as a protective shield, offering you security and safeguarding your equity, regardless of economic fluctuations.


Rare Cases of Homes Selling for Less than Mortgage Balance

You might wonder whether homes ever sell for less than the mortgage balance. In reality, such scenarios are exceptionally rare. HomeEquity Bank has a conservative lending approach, never exceeding 55% of a home's value, specifically to prevent this situation.


In fact, over the past three decades, a remarkable 99% of Reverse Mortgage holders have had equity left in their homes. On average, this remaining equity amounts to an impressive 60%. As real estate values generally appreciate over time, the equity in your home continues to grow, reducing the impact of interest charged on the mortgage principal. And the best part? You retain all the equity left in your home, which depends on factors like the borrowed amount, your home's value, and the time that has passed since you obtained the reverse mortgage.


Get In Touch for Expert Guidance

If you're intrigued by the idea of using The CHIP Reverse Mortgage to tap into your home equity and secure your financial future, don't hesitate to reach out. I'm here to answer any questions you may have and provide expert guidance on this valuable financial solution.


In a world where financial peace of mind is priceless, The CHIP Reverse Mortgage offers a reliable path to unlock your home's hidden potential and ensure a comfortable retirement.



Ready to explore your options and secure your financial future? Feel free to reach out to me today. Your peace of mind is just a conversation away!

Jamie Ushko

Mortgage Broker

Employment and Mortgage Qualification: What Lenders Look For

By Jamie Ushko • July 8, 2026
When you apply for a mortgage, your employment history and status carry a lot of weight. Even if you feel secure in your job, lenders need proof that your income is reliable and will continue. To them, your employment status is one of the strongest indicators of whether you can make your mortgage payments long term. Here’s how lenders typically view different employment situations: Permanent Employment This is the gold standard. Once you’ve passed any probationary period and hold permanent status, lenders see you as a lower risk. It shows that your employer is committed to you, and your income is steady. Probationary Periods If you’re still on probation—usually 3 to 6 months, though sometimes longer—lenders may hesitate. That’s because your employer can end your contract without cause during this period. Once probation is over, you’re considered more secure. That said, context matters. If you’ve worked with the same company for years as a contractor and just transitioned into full-time employment, lenders may accept a letter from your employer confirming that probation is waived. Documentation is key here. Parental Leave Being on or about to take parental leave doesn’t mean you can’t qualify for a mortgage. As long as you have a letter from your employer guaranteeing your position and return-to-work date, lenders can use your regular salary—not your leave income—when assessing your application. Term Contracts This is one of the trickiest categories. Even highly skilled professionals with strong incomes can face challenges here. A term contract has a start and end date, which makes lenders question the stability of your future income. To use term-contract income, lenders generally want to see at least two years of history, or proof that your contract has already been renewed. The more evidence you can show of consistent employment, the stronger your case will be. The Bottom Line If you’re planning to apply for a mortgage, it’s important to understand how your employment status could affect your approval. Whether you’re starting a new job, coming back from leave, or working under contract, lenders want documentation that proves your income is reliable. 📞 If you’ve recently changed jobs or are planning a career shift, let’s connect. I can help you prepare your file so you qualify with confidence and avoid surprises in the approval process.

Deposit vs. Down Payment: Key Differences for Homebuyers

By Jamie Ushko • July 1, 2026
When you’re buying a home, two terms often cause confusion: deposit and down payment . While they’re related, they serve very different purposes in the homebuying process. Here’s what you need to know. What Is a Deposit? A deposit is the money you provide when you make an offer on a property. Think of it as a show of good faith that proves you’re serious about purchasing. How it works : Typically, you provide a certified cheque or bank draft that your real estate brokerage holds in trust. If your offer is accepted, the deposit remains in trust until the deal moves forward. If negotiations fall through, the deposit is refunded. Connection to your down payment : Once the sale is finalized, your deposit becomes part of your total down payment. Why it matters : The amount is negotiable, but a larger deposit can make your offer more attractive in a competitive market. Keep in mind, however, that if you back out after conditions are removed, you risk losing your deposit. What Is a Down Payment? Your down payment is the amount you contribute toward the purchase price of your home when securing a mortgage. Minimum requirement : In Canada, the minimum down payment is 5% of the home’s purchase price. Anything less than 20% requires mortgage default insurance. Sources : Down payments can come from your savings, the sale of another property, RRSP withdrawals (through the Home Buyers’ Plan), a gift from family, or even borrowed funds. Example: How They Work Together Imagine you’re buying a $400,000 home with a 10% down payment ($40,000). When you make your offer, you provide a $10,000 deposit . Once conditions are met, that deposit is transferred to your lawyer’s trust account. At closing, you add the remaining $30,000 to complete your full down payment. The lender provides the rest—$360,000—through your mortgage. The Bottom Line Your deposit shows commitment and secures your offer, while your down payment is what makes the mortgage possible. Together, they work hand in hand to get you into your new home. 📞 If you’d like clarity on deposits, down payments, or any other part of the mortgage process, let’s connect. I’d be happy to walk you through it step by step.