Reverse Mortgage Rates See Big Drop!

Big Drop for Reverse Mortgage Rates

The rate on a CHIP Home Income Plan reverse mortgage dropped to 3.75 per cent, down from 4.95 per cent, as a result of HomEquity’s recent transformation to a chartered bank.

“Becoming a Schedule 1 Bank has allowed us to lower our rates because we now raise funding the same way that other banks do,” said Greg Bandler, senior vice-president of HomEquity Bank, adding the company is seeing more demand for reverse mortgages due to the growing population of seniors in Canada.

Along with the lowered rate, HomEquity Bank which now issues GICs - is also offering a discount program for customers who pay their full interest annually. The program reduces the interest rate on a CHIP mortgage to as low as 3.25 per cent. For more information please contact us today. 

At the end of September HomEquity’s reverse mortgage portfolio totaled about 7,000 with an accrued value of $837 million. The company provides reverse mortgage products directly to consumers as well as through referrals from banks, financial planner and mortgage brokers.

This Article was published in the Canadian Mortgage Professional Magazine.

For more info you may call our office and we will be pleased to explain the process or set up an appointment for you to discuss your need for a Reverse Mortgage.