Reverse Mortgage Rates

Below are the best reverse mortgage rates currently offered in Canada. Also shown are the latest changes.

Rate Type HomeEquity Bank Equitable Bank Equitable Bank (Lump Sum)
6-month Fixed 5.39 -20 bps
4.79% -15 bps N/A
1-year Fixed 4.99
4.09% -15 bps 3.79% -15 bps
2-year Fixed N/A 4.49% -15 bps 3.89% -15 bps
3-year Fixed 5.19% -50 bps
4.59% -15 bps 3.99% -15 bps
5-year Fixed 5.49% -30 bps
4.69% -15 bps 3.99% -25 bps
Variable 4.99%   4.84%  -0.15% 4.54% -0.15%

Last rate changes: April 9, 2020 (HomeEquity Bank); May 28, 2020 (Equitable Bank).


One Thing to Remember About Reverse Mortgage Rates

Reverse mortgages always cost more than conventional mortgages because the lender’s funding costs are higher. The reason for that is two-fold:

  1. You are not required to make payments. This means the lender must wait years to get its money back (7-12 years on average)
  2. The lender can never recover more money from you than your home is worth, so the risk on their part is higher (especially if you live longer than the average Canadian)

Canada's latest reverse mortgage rates

As you can see, with only two reverse mortgage lenders in Canada, there isn’t much competition. This keeps rates a bit higher than they otherwise might be. That’s why our advisors carefully review your circumstances to see if other lower-cost financing might be available to you.

That said, when cash is key and leaving your home is not an option, and you don’t qualify elsewhere, the rate on a reverse mortgage can seem like a bargain compared to the alternatives.


Reverse Mortgage Rate Terms

The contract for all reverse mortgages is five years. If you choose a shorter term, your rate resets to the current rates at the end of that period. After five years, however, you can choose a new rate or pay off the reverse mortgage without penalty. 

All rates are based on an approved application. To confirm your qualifications, we welcome you to set up a free reverse mortgage consultation today.