Written by a Chartered Accountant - who won several mortgage awards because of this free guide.
Learn The Truth And The REAL Facts
There is a lot of bad information out there about reverse mortgages - that's why we created our free guidebook to clear up everything you need to know.
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3. All the facts that you must be aware of that nobody else is telling you.
4. What is needed for you to get a reverse mortgage.
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About The Author
Michael (Mich) Sneddon, CPA, CA
In 2017 I was named one of the top Mortgage Professionals in Canada (under 35) by Canadian Mortgage Professional magazine and in 2018 I was nominated for a Canadian Mortgage Award - thanks to all the people I have helped with my free reverse mortgage guide.
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What Is A Reverse Mortgage?
A reverse mortgage is a specialist home loan only available to people in Canada over the age of 55. It is called this because - unlike other mortgages - it doesn't require regular monthly payments. The key features:
You must be over 55 years old to qualify.
No monthly payments are required.
The maximum amount you can borrow is 55% of the value of your home.
Interest is charged but added to the amount owed, instead of being paid.
It is specifically for seniors - or those getting closer to retirement - hence the age restriction.
Canada vs USA - Beware
Please note that the above information relates to a reverse mortgage in Canada. For example, the age to qualify for a reverse mortgage in the USA is actually 62. This is why our free guide is a must read, as many people get confused between the Canada and U.S. reverse mortgage - the two products are very different.
If you have been reading any information that references the age as 62, or uses terms such as 'HUD', 'HECM', 'FHA' or 'churning' - then you have been reading information that relates to a reverse mortgage in the U.S.A - none of these terms have anything to do with Canada. See our free article on Canada vs the USA for more information.
You can also see the definition on the Government of Canada website or download our free reverse mortgage guidebook below to learn more about how it works in Canada.
What About An RBC Reverse Mortgage Or Other Lenders?
At present, the "Big 5" Canadian banks - RBC, BMO, CIBC, Scotiabank and TD do not offer a reverse mortgage.
It is only offered by two lenders: Home Equity Bank (sometimes written as HomeEquity Bank) - with their CHIP reverse mortgage (official website - is www.chip.ca) who are a regulated and Schedule I chartered bank in Canada - as well as Equitable Bank (official website is www.equitablebank.ca) with their Equitable PATH Home Plan Reverse Mortgage - which was launched in January 2018.
Manulife also have a product that can work in a similar way to a reverse mortgage - please contact us if you are interested in learning more about this.
What About Interest Rates?
For more on this and where the current reverse mortgage rates lie, check out our reverse mortgage rates article.
Award Winning Information You Can Trust
We've won dozens of awards for our mortgage advice - including the prestigious Most Trusted Mortgage Agent in Canada award from the Wealth & Finance Awards.Get Your Free Guidebook
If you have any further questions then please let me know! I hope you found some value from this.
- Michael (Mich) Sneddon CPA, CA
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Last updated: 19th January 2021