Below are Canada’s best reverse mortgage rates. Also shown are the latest changes.
|Rate Type||HomeEquity Bank (CHIP)
||Last Change||CHIP Max||Last Change||Equitable Bank||Last Change||Equitable (Lump Sum)||Last Change|
||+10 bps||4.19%||-20 bps||N/A|
||-10 bps||3.59%||-20 bps||3.19%||-20 bps|
|2-year Fixed||N/A||N/A||3.99%||-20 bps||3.29%||-20 bps|
||-30 bps||5.79%||-10 bps||4.09%||-20 bps||3.39%||-20 bps|
||-10 bps||4.19%||-20 bps||3.49%||-20 bps|
|4.59%||-20 bps||5.59%||-20 bps||4.54%||-10 bps||3.94%||-40 bps|
Last rate changes: October 16, 2020 (HomeEquity Bank); October 21, 2020 (Equitable Bank).
Reverse mortgages always cost more than conventional mortgages because the lender’s funding costs are higher. The reason for that is two-fold:
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.
Here are three other important notes:
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.