Reverse Mortgage for Canadians 55 and Over

Unlike a conventional mortgage and almost every other lending option, a reverse mortgage requires no regular principal or interest payments.

• A reverse mortgage is a flexible financial solution that helps reduce cash outflow, ensuring your monthly income isn't diminished by regular interest or principal payments. The amount you owe will only be due when you decide to move or sell.¹
• With a conventional mortgage or line of credit, you're required to make monthly payments, and failure to do so could put your home at risk of foreclosure.

1 The reverse mortgage will also be 'due' if the borrower contravenes their mortgage terms or fails to meet their obligations under their reverse mortgage agreement.

With a reverse mortgage, you will never owe more than your home is worth. Think of it like built-in insurance for your retirement future.

• Thanks to our No Negative Equity Guarantee², as long as your mortgage obligations are met, the amount you'll have to repay won't exceed the fair market value of your home. HomeEquity Bank will cover the difference between the sale price and the loan amount.

2 The guarantee excludes administrative expenses and interest that has accumulated after the due date.

The same funding sources available to banks for conventional mortgages are not available for reverse mortgages.

• Certain government programs allow banks to fund conventional mortgage originations at a lower cost. However, reverse mortgages don't qualify for these programs since they don't require regular payments. As a result, our funding costs are higher than those of major Canadian banks.