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||N/A||5.44% -0.15%||N/A|
|1-year Fixed||5.19 +20 bps
||4.74% -0.15%||4.44% -0.15%|
|2-year Fixed||N/A||5.14% -0.15%||4.54% -0.15%|
||5.24% -0.15%||4.64% -0.15%|
||5.34% -0.15%||4.74% -0.15%|
|Variable||5.94%||5.49% -0.15%||4.89% -0.15%|
Last rate changes: January 15, 2020 (HomeEquity Bank); February 13, 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.