Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeReal EstateMortgagesMortgage RatesThe best reverse mortgage rates in Canada right nowRob McLister: Here's everything you've ever wanted to know about reverse mortgages, including the best rates, updated dailyLast updated 17 hours ago You can save this article by registering for free here. Or sign-in if you have an account.Mortgage expert Robert McLister walks people through the pros and cons of reverse mortgages. Photo by Financial photo photo illustrationCanada’s mortgage market is changing all the time, but we keep track of the best rates. Bookmark this page to find the best reverse mortgage rates, updated daily, based on data from MortgageLogic.news. Postmedia and Imaginative.Online Inc., parent of MortgageLogic.news, are compensated by certain mortgage providers when you click on their links in the chart below.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorGet the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againWhen you’re an equity-rich, 55-year-old-plus homeowner and you need cash, and your only other liquidity plan involves winning the lottery, a reverse mortgage can feel like divine intervention.Reverse mortgages let you convert home equity into cold, hard, tax-free cash. They require no monthly payments whatsoever (interest owed is added to the value of the loan) and as long as you keep your home maintained and your property taxes and insurance paid, lenders won’t ask you to pack your bags or pay them back early.And here’s the kicker: if home prices plunge, lenders guarantee you’ll never owe more than your home is worth at the time it’s sold.Reverse mortgages have gone from a niche last-resort borrowing solution to a booming industry. According to a 2024 HomeEquity Bank study, Canadians 55 and up were collectively sitting on $2.5 trillion in home equity.Moreover, a whopping 71 per cent of Canadians in the 75-and-over club are still homeowners, according to Environics Analytics. And a 2023 Deloitte study found that 17 per cent of soon-to-retire homeowners were ready to tap their home equity to bridge a savings shortfall.That means there’s a mountain of dormant wealth that older homeowners can tap. Combine that with retirement savings challenges, and it’s no wonder the “equity release” industry is expanding faster than federal spending at election time.Reverse mortgage proceeds can be used for virtually anything. You can:Wipe out debtsMake home improvements — install a walk-in tub, say, or finally fix that leaky roofGive your kids a down payment boost — possibly to prevent them from moving back inTake a dream vacation or otherwise splurge (not our recommendation, but hey, YOLO isn’t just for millennials)Use it as a down payment on an income property or vacation homeNaturally, reverse mortgages aren’t the only fish in the home loan sea. Here’s how the main options compare:Note that some banks and brokers offer cash rebates to offset some of these fees. At a minimum, always ask for an appraisal rebate, as reverse mortgages have healthy profit margins and whoever is selling you one can spare the change.HomeEquity, through its predecessor CHIP, launched Canada’s reverse mortgage sector in 1986. But since 2018, there’s been a flock of new players.There are now four main providers in the space, including HomeEquity Bank, Equitable Bank, Home Trust and Bloom Finance. All four are sound, reputable companies, but each has its quirks.For example, HomeEquity Bank has the widest lending area, Equitable Bank has highly competitive rates, Home Trust has great rates, plus it doesn’t charge borrowers an extra premium at renewal, and Bloom Finance offers the most convenient borrowing option with its Bloom Card.An experienced mortgage broker can help you compare all these lenders.For now, read on to see:What you need to qualify for a reverse mortgageWhether to get one at allHow to trim your costsOlder Canadians can’t rely as much on their ability to generate income. That sometimes leads to cash flow issues that make even Tim Hortons coffee seem expensive.For many, reverse mortgages are the last fiscally viable option to live a comfortable life, but to qualify, there are three key requirements:Depending on your age, property and location, you can get anywhere from 15 per cent to 59 per cent of your home value. Generally, if you’re only 55, a traditional reverse mortgage limits your borrowing to 15 per cent of your home value.If there’s another mortgage already parked on your title, reverse lenders will politely decline or make you pay it off. If you have a mortgage on your home for 60 per cent of its value, for example, a reverse mortgage is out of the question.On the other hand, if you have an existing mortgage and qualify for a big enough reverse mortgage, you can use the new reverse mortgage to pay off the other loan, thus eliminating its payments.Also, the home must be where you actually live — not a rental or Airbnb that you check on once a month.If the condition of your home would scare off an appraiser or resale buyer, a reverse mortgage company won’t want it either.The property must be in good repair with a minimum value of $200,000 to $300,000.Location matters, and some lenders have location restrictions. For example:Equitable Bank lends in Alberta, British Columbia, Ontario and QuebecBloom Finance lends in Alberta, B.C. and OntarioHome Trust is starting in Ontario only, but is expected to expand to most provinces by 2026HomeEquity Bank lends in all 10 provincesAnd yes, if your town’s claim to fame is a blinking yellow light, you might not qualify. Some companies want a minimum population (e.g., 10,000 or 100,000-plus) before they’ll lend.You may not have mortgage payments, but you still need to pay your property taxes, insure the place and keep it from resembling a fixer-upper on a reality show. The lender will make sure you can afford to do that.Failing to pay property taxes or insurance, or to maintain the home, can lead to default.Unless promptly cured, the lender can swoop in to foreclose faster than a hawk on a field mouse.The best strategy is to stash enough cash away for retirement so that your home doesn’t have to double as an ATM.Yet, there are four specific times when a reverse mortgage is especially ill-advised:A HELOC is essentially a giant credit card tied to your house. It lets you borrow as you need to, as opposed to taking a big lump-sum at the beginning that you may not need.HELOCs are usually at least one percentage point cheaper rate-wise and offer the lowest possible interest-only payments. Albeit, HELOCs only come with floating rates, whereas reverse mortgages and regular mortgages offer fixed-rate options.Manulife’s One HELOC is one of the best reverse mortgage substitutes because, unlike most HELOCs, it also doubles as a bank account. That means depositing income into the HELOC can effectively satisfy the monthly interest-only payments.Manulife also has more flexible qualifying options than some HELOC providers.Pro tip: Cap your HELOC limit at 75–80 per cent of what you’d qualify for with a reverse mortgage. That way, if all else fails, you can pay off the HELOC with a reverse mortgage if needed.One catch with HELOCs: lenders can yank the credit line if they get cold feet or your finances nosedive. I’ve never heard of Manulife calling in its line of credit if the borrower is paying as agreed, but anything’s theoretically possible. Reverse mortgages don’t come with this risk.While we’re on the topic of HELOCs, we should mention there’s one reverse mortgage lender that offers a HELOC-like option. The company is Bloom Finance.Bloom’s Home Equity Prepaid Mastercard lets you draw funds when needed, with no readvance fees — unlike most reverse mortgage companies. Over a decade, that flexibility could save you thousands, but it depends on how you borrow and what the rates are at the time.The upfront costs of a reverse mortgage (e.g., closing costs, appraisal fees and interest) may outweigh the benefits, making other financial options more cost effective.You may also face stiff prepayment penalties if you bail from a reverse mortgage before three to five years.Skip basic upkeep, tax or insurance payments and it’s like sending your lender a formal invitation to call in your loan.Compound interest doesn’t just take a bite — it goes full buffet on your home equity.Depending on rates, appreciation and how much you borrow, the loan could vacuum up every dollar of equity within 20 to 25 years. And keep in mind, the average 65-year-old still lives for at least 20 more years — plenty of time for interest to turn a nest egg into an empty shell.Once the black sheep of personal finance, reverse mortgages are far cheaper than in the old days, and much more mainstream.You can see the latest reverse mortgage rates updated daily on this page. Canada’s best reverse mortgage rates are usually at least one to two percentage points above regular mortgage rates for a similar term. That’s the cost of easy qualification and the luxury of no payments.Always consult a broker who specializes in reverse mortgages and has worked with all four major providers. That way, you’re comparing more than just brochures — which matters since the lenders’ rates, fees and fine print vary.Pro tip: Brokers get paid a commission. Ask the broker to explain how their commission differs among lenders and how it might affect their recommendation. That way you know if there might be conflicts of interest — and maybe even haggle your way to a small cash rebate.Plan on at least the following:Independent legal advice: $500 to $750Appraisal: $300 to $500Lender fee: $995 to $2495Reverse mortgage lenders often run promos that can reduce fees substantially. Make sure you ask the lender or broker what is currently on offer.With most mortgage lenders, the loan salesperson can “buy down” (reduce) the interest rate by sacrificing some of their commission.We’re unaware of any reverse mortgage lender that allows this.You can take money out via:A lump sumScheduled monthly instalmentsUnscheduled monthly instalmentsA credit card, in the case of the Bloom Home Equity Prepaid MastercardInstalments rack up less interest than lump-sum withdrawals.Unscheduled advances generally entail a $50 fee, but not when using Bloom’s Mastercard.Reverse mortgages often close in as few as three to four weeks. That assumes your independent counsel deems a reverse mortgage suitable, and there are no snags with your property valuation.If you have an open reverse mortgage, there is no penalty, but the rate is higher.For closed versions, there may be a prepayment penalty ranging from three-months’ interest to five per cent of the approved loan amount, depending on how early the breakup happens. If you pay off the loan at the end of the term in five years, there is no penalty.Some lenders show mercy if you’re heading to long-term care — splitting the penalty so your exit doesn’t sting quite as much. And if you pass away with the mortgage still in place, there’s no penalty — though I wouldn’t call that a “loophole” worth planning for.Nope. Reverse mortgage proceeds don’t count as income, so your income-tested government benefits — such as Old Age Security (OAS) or the Guaranteed Income Supplement (GIS) — are unaffected. In other words, no OAS or GIS clawbacks.Reverse mortgage loans must be paid off before assets are divvied up by heirs. And the steeper the interest rate, the quicker that equity gets torched — leaving less behind for the next generation.But hey, it’s the homeowners’ own hard-earned money, not a trust-fund starter kit, right kids?Downsizing could be a better call if your goal is to leave the kids more than just property tax bills and your stamp collection. But keep in mind, selling and moving isn’t free. Get ready for:Up to five per cent real estate commissionsLand transfer taxes on any new purchaseClosing costsMoving costsCondo maintenance fees (if applicable)MiscellaneousWhen the last borrower passes, the estate has to settle the loan before anyone inherits so much as a throw pillow.Somewhere around 71, say lenders.In general, you should always shop around and it never hurts to try and play one lender against another. Equitable Bank has even started throwing down the gauntlet by advertising: “We’ll beat any reverse mortgage rate posted in Canada.” Home Trust, the latest competitor in the market, appears determined to aggressively challenge Equitable, its established rival.Generally, yes.Yes, if you qualify.That depends on the interest rate and home appreciation, among other things.Say you borrow $200,000 on a $500,000 home, the home appreciates at two per cent annually, and your interest rate averages six per cent.According to HomeEquity Bank’s calculator, you’d still have $90,567 left after 20 years — assuming nothing goes sideways with rates, valuations or reality.In practice, the average reverse mortgage lasts only seven to 12 years.As an industry average, it’s somewhere around 50 per cent — kind of like splitting a pie with a very hungry banker.As of October 2025, a new entrant has tossed their hat in the ring: Home Trust. Long known as an alternative lender for people who didn’t fit with banks, Home Trust is vying for business with competitive rates and fair terms under the label “EquityAccess.”The company will serve only Ontario to start, but will branch out to other provinces by 2026. Home Trust’s key advantage is renewal pricing. Unlike some rivals who charge renewers more than new customers, Home Trust skips renewal surcharges, avoiding what I like to call the “loyalty penalty.”The company also lends up to 59 per cent of one’s home value, assuming the borrower is over 70 years old. Just keep in mind that borrowing more than 55 per cent entails a higher interest rate.Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news. You can follow him on X at @RobMcLister.For the latest mortgage rate changes, check this page daily. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.