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|
||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).
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.
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.