Monthly Archives: January 2018

More competition may mean better interest rates on reverse mortgages>

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?

Get your free reverse mortgage guide

How to improve your monthly cash flow with a reverse mortgage.

Craig and Dawn S.,Hamilton, Ontario reverse mortgage customers

Craig, 82 and Dawn, 75, have been living in their classic suburban home for many years. Over the years, they started to notice their home deteriorating and their old car was in desperate need of repairs.

Craig spoke to his sister Colleen who suggested he look into a Reverse Mortgage to access cash and invest some of the money to improve their monthly cash flow.

Craig and Dawn successfully accessed a full 40% of their appraised home value.

With no regular payments required, Craig and Dawn were able to preserve their existing RRIF investment portfolio, replace their car, make minor home renovations and create a monthly income stream with the remaining balance.

Dawn said,

“To be able to come up with a financial solution specifically for our needs and not have to worry about the consequences on our lifestyle is the ideal situation, and we are so grateful for it.”

Learn more about how a reverse mortgage could work for you!