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Below are current rates from the country’s two national reverse mortgage providers:
Rate Type |
HomeEquity Bank (CHIP) |
Last Change |
CHIP Max |
Last Change |
Equitable Bank (Flex) |
Last Change |
Equitable (Lump Sum) |
Last Change |
6-month Fixed |
4.59% |
+10 bps |
5.84% |
+25 bps |
4.89% |
+30 bps |
4.89% |
+30 bps |
1-year Fixed |
3.89% |
-10 bps |
5.64% |
+25 bps |
3.69% |
- |
3.49% |
+30 bps |
2-year Fixed |
N/A |
- |
N/A |
- |
3.99% |
- |
3.59% |
+30 bps |
3-year Fixed |
4.29% |
-30 bps |
6.04% |
+25 bps |
4.09% |
- |
3.69% |
+30 bps |
5-year Fixed |
4.59% |
-20 bps |
6.24% |
+25 bps |
4.39% |
- |
3.79% |
+30 bps |
Variable |
4.59% |
-20 bps |
5.84% |
+25 bps |
4.39% |
- |
4.24% |
+30 bps |
Last rate changes:
Reverse mortgages always cost more than conventional mortgages because the lender’s funding costs are higher.
The reason for that is two-fold:
At the moment, there are only two mainstream reverse mortgage lenders in Canada. This duopoly doesn’t result in much competition, meaning rates are arguably higher than they otherwise might be.
Having said that, both Equitable Bank and HomeEquity Bank have become more aggressive in their reverse mortgage pricing since 2020. That was a year reverse mortgage rate sank to historic lows.
Despite reverse mortgage rates being materially higher versus standard mortgage rates, 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's three other things to keep in mind about reverse mortgage rates:
The contract for all reverse mortgages is typically five years, even if you choose a short term like a 1-year fixed. If you do 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. Of course, all rates you see here are subject to change and are based on an approved application.
RATESDOTCA has teamed up with intelliMortgage (FSRA license# 12326) for the most comprehensive reverse mortgage advice in Canada. For more information, please contact Doug Boswell.
Seniors who need cash from their home have three main options: a mortgage, a reverse mortgage and a HELOC. Each of these alternatives has its pros and cons and qualification requirements. Here’s a quick comparison.
Compare reverse mortgages with HELOCs and mortgages
|
Reverse Mortgage |
HELOC |
Mortgage |
Must make payments |
No |
Maybe |
Yes |
Must prove income |
No |
Yes |
Yes |
Minimum Age |
55 |
None |
None |
Minimum Time to Close (Approx. days) |
30 |
21 |
21 |
Maximum Loan-to-Value |
15-55% |
50-65% |
50-80% |
Minimum Advance at Closing |
$20,000 |
$0 |
$100,000 |
Early Repayment Penalties |
Yes |
None |
Yes |
Appraisal Cost* |
Free!* |
Free!* |
Free!* |
Rate range |
Highest |
Moderate |
Lowest |
Closing Costs (Approx.) |
$1795 to $3200 |
$895 |
$895 |
* Available via our partner, intelliMortgage (FSRA license# 12326). RATESDOTCA has teamed with intelliMortgage for the most comprehensive reverse mortgage advice in Canada. For more information, please contact Doug Boswell.