Better interest rates for your reverse mortgage!
For many years there had only been one lender in Canada that offered a reverse mortgage that is until today when Equitable Bank announced the launch of their Path Home Plan mortgage.
With the reverse mortgage market growing each year it was only a matter of time before someone saw the potential in this market.
For now the interests rates being offered are no better than what is being offered through HomEquity Bank but that could change over time as the lenders work to gain market share. At the very least it may help to keep reverse mortgage interest rates in check.
This does not mean that interest rates on reverse mortgages will drop to the same level as a traditional mortgage. Reverse mortgages are based on the equity in the home, not on the borrowers income level and as with mortgage based on equity there will always be a higher interest rate.
That said reverse mortgages provide other benefits that may make this the best option for some borrowers. Some of those benefits include:
- No mortgage payments
- Tax free access to the equity in your home
- You still own and live in your home
Do you want to find out more?