Canadian Reverse Mortgage Penalties
Reverse mortgage rates are often asked about, but it’s important to understand that these rates can vary for each individual. This is true for traditional mortgages as well, although many people are not aware of this. Some websites advertise very low rates to attract customers, only to later say that they don’t qualify for those rates. In 2024, I will provide updated information on reverse mortgage rates to keep you informed.
To start, if you’re new to reverse mortgages, I recommend downloading my free guidebook from my reverse mortgage page. This guidebook will explain the basics of this type of home loan.
When considering rates, it’s important to think about the long-term impact on your home equity, rather than just focusing on current rates. Currently, standard reverse mortgage rates range from 7.29% to 9.90%. For the popular 5-year fixed rate option, rates are around 7.29% to 7.69%. The exact rate you receive and the amount you can borrow will depend on factors such as your age, lender, loan amount, property location, term and size of the mortgage, and whether you choose a fixed or variable rate.
It’s not possible to provide an exact rate here, but it will be close to the range mentioned. If you’d like a free quote to find the best rate from available lenders, you can click here and fill out our free minute assessment form.
When comparing reverse mortgage rates to other mortgage products, it’s important to remember that rates are constantly changing and depend on individual qualifications. Generally, reverse mortgage rates tend to be 1-2% higher than the prime rate, which is the best rate for those with top-level credit scores.
In my honest opinion, these penalties are very reasonable and the fact that there is no penalty upon death or after 5 years. Can’t forget a reduced penalty if you have to move to a nursing home! These are definitely a positive feature of the product, compared to others out there.