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Reverse Mortgages


A reverse mortgage from HomEquity Bank is a smart way for those over 55 years old to  access the equity they’ve accumulated in their home as tax-free cash. Despite the fact that reverse mortgages have been in Canada since 1986, there is still a lot of misunderstanding.



FAQ's about Reverse Mortgages​


Q. What must my home be worth to apply for a reverse mortgage ?
​A. The house must have an appraised value of no less than $150,0000



Q. Will the home owner owe more than the house is worth?
A. The homeowner keeps all the equity remaining in the home. 99% of homeowners have money left over when their loan is repaid. The equity remaining depends on the amount borrowed, the value of the home, and the amount of time that’s passed since the reverse mortgage was taken out.


Q. What is the maximum amount I can borrow
A. The maximum loan is 55% of the home's value. The amount available is calculated based on your age, home's value, interest rates etc. The younger the borrower the less they will qualify for


Q. Will the bank own my home?
A. No. The homeowner retains title and maintains ownership of the home. It’s required for the homeowner to live in the home, pay taxes on time, have property insurance, and maintain the property in good condition.


Q. Should reverse mortgages only be considered as a loan of last resort?
A. No. Many financial professionals recommend a reverse mortgage to supplement monthly income instead of selling and downsizing, or taking out a conventional mortgage or a line of credit.



Q. What fees are associated with a reverse mortgage?
A. There are one time fees to arrange a reverse mortgage such as an appraisal fee, fee for independent legal advice, title insurance, and registration. With the exception of the appraisal fee, these fees are paid for with the funding dollars.


Q. What if the homeowner can’t afford payments?
A. There are no monthly payments required as long as the homeowner is living in the home.


Q. What if the homeowner has an existing mortgage?
A. Many of clients use a reverse mortgage to pay off their existing mortgage and debts.


Q. Will the homeowner be eligible if they have no income or poor credit?
​A. Yes! Credit score or income verification is not required to qualify for a reverse mortgage. The amount of money the homeowner is eligible for is based on age, spouse’s age, location of the home, type of home, the amount of secured debt, and the home’s appraised value.