As long as the surviving spouse is on title, they can choose to remain in the home without having to make a repayment.
FACT
You should always explore all options before making a decision. HELOCs are a good short-term borrowing option for those who can pay the interest and loan back in the near future. However, HELOCs are callable loans with monthly payments and there exists significant risk of non-renewal or cancellation.
Whereas a reverse mortgage is a long-term financial solution that won’t be called based on economic changes such as interest rates increasing, property values decreasing and doesn’t require any monthly payments, so it provides the ability to prolong your retirement savings.
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A reverse mortgage can be used to consolidate existing debt, eliminate monthly debt payments and provide financial security. If you have existing debt, these would need to be paid off first and the remainder of the funds can be used however you may choose.
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A reverse mortgage frees up equity that is tied up in the value of a home and can allow you (as a borrower) to enjoy retirement on your terms.
In fact, many financial professionals recommend a reverse mortgage as the proceeds are tax-free and after paying off debts, can be used for anything you choose, from purchasing a vacation home to helping grandchildren with school tuition.
FACT
HomeEquity Bank rates can be more favourable than alternative lenders' rates on second mortgages or unsecured loans. Plus, with a reverse mortgage, clients don’t have to worry about making any repayments as the debt isn’t owed until the borrower(s) pass away or no longer live in the home.
FACT
A reverse mortgage is a lifetime product and as long as the property taxes and insurance are in good standing, the property remains in good condition and you (the homeowner) are living in the home, the loan won’t be called even if the house decreases in value. Reverse mortgages provide peace-of-mind that you can stay in your home as long as you’d like.
FACT
As a HomeEquity Bank client, you can qualify for up to 55% of your home’s appraised value. Every reverse mortgage comes with a No Negative Equity Guarantee*, which means the amount you will have to pay on the due date will not exceed the fair market value of your home as long as the conditions of the loan are met. In fact, 99% of clients have equity remaining in the home after the loan is repaid.
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As the homeowner you always maintain title ownership and control of the home. You have the freedom to decide when and if you’d like to move or sell.
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Find out how much tax-free cash you can access with CHIP now.
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Reverse Mortgages
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Thousands of Canadians are using a reverse mortgage as part of their retirement solution. Purpose-built for Canadians 55+, reverse mortgages allow homeowners to turn some of their home’s equity into tax-free cash.
A reverse mortgage is a lifetime product
Each reverse mortgage comes with a No Negative Equity Guarantee*
If I get a reverse mortgage, I will owe more than my house is worth...
No, you maintain full title and control of your home
The bank will own my home...
The Truth About
Separating the Myths & Facts
*Must maintain property, pay property taxes and homeowners’ insurance, and abide by your mortgage obligations. The guarantee excludes administrative expenses and interest that has accumulated after the due date.
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The bank can force me to sell or foreclose my home at any time...
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*Must maintain property, pay property taxes and homeowners’ insurance, and abide by your mortgage obligations. The guarantee excludes administrative expenses and interest that has accumulated after the due date.
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Reverse mortgages are too expensive because the rates are high...
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Rates can be more favourable than many alternative lenders' rates
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A reverse mortgage is a last resort solution...
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No, in fact many financial professionals recommend a reverse mortgage
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I can't get a reverse mortgage if I have an existing mortgage...
You can, a reverse mortgage is a great debt consolidate solution
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A Home Equity Line of Credit (HELOC) is a better option...
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Surviving spouses are stuck paying the loan if their partner passes away...
As long as the surviving spouse is on title, they can choose to remain in the home
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FACT
HELOCs are a good short-term borrowing option, but are callable loans with monthly payments
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