Reverse Mortgages in Canada
Contact us today to learn about our reverse mortgage options and how we can help you access your home equity without selling your home.
Reverse Mortgage Options
There are several different types of reverse mortgage options available in Canada, each with its own benefits and drawbacks. Here are some of the most common types of reverse mortgage options in Canada:
This is the most common type of reverse mortgage in Canada and is offered by HomeEquity Bank. CHIP Reverse Mortgages are available to homeowners who are 55 years of age or older and have significant equity in their homes. The amount of the loan is based on the value of the home, the age of the homeowner, and the interest rate.
This is a newer option in Canada and is offered by Equitable Bank. PATH Reverse Mortgages are also available to homeowners who are 55 years of age or older and have significant equity in their homes. The amount of the loan is similarly based on the criteria of home value, the homeowner’s age, and the interest rate.
Reverse Mortgage Rates
Applying for a reverse mortgage in Canada means you will typically face higher interest rates compared to traditional mortgages. The rate will depend on several factors, including the lender, the type of reverse mortgage, and the homeowner’s age and equity in the property. For example, HomeEquity Bank’s CHIP Reverse Mortgage is typically between 4.95% and 5.95%, and Equitable Bank’s PATH Reverse Mortgage is typically between 3.89% and 5.89%.
How it Works
Working with our team, we can walk you through the reverse mortgage process for your home. We’ll check all the boxes so you can use your home’s equity for whatever you choose!
During the application process, we’ll ensure you meet the criteria and gather relevant documentation.
We’ll negotiate on your behalf with available lenders to help you get the best rate possible.
Connecting with you after our negotiations, we’ll present you with the options to make an informed decision.
Reverse mortgages have different requirements to obtaining approval, meaning the process is often more seamless.
Once your reverse mortgage is approved, we’ll go over the contract with you and answer any final questions before you sign.
How Does a Reverse Mortgage Work?
- Age Homeowners must be at least 55 years of age or older to qualify for a reverse mortgage.
- Homeownership Homeowners must own their home outright or have a small remaining mortgage that can be paid off with the proceeds of the reverse mortgage.
- Primary Residence The home must be the primary residence of the homeowner
- Home Value The home must meet certain value requirements, which can vary depending on the lender and the location of the property.
- Property Type The property must be a single-family home, a semi-detached or townhouse, or a condo that meets certain requirements.
- Equity The homeowner must have significant equity in the property, which is typically at least 50% of the appraised value.
Apply Now and
Get Approved Today
Reverse mortgages are unique loans that can help ease you into retirement, plan for the future, or use for personal finances. The Jason Anbara team is here to answer all your questions about reverse mortgages in Canada.