What’s the difference between Equitable Bank’s PATH Home Plan equity release and a standard mortgage?
The main distinction is that the PATH Home Plan is a long-term financing solution that requires no payments until the mortgage is due. It allows qualifying homeowners to convert a portion of their home equity into cash on a tax-free basis while remaining in their principal residence.
With the PATH Home Plan:
No interest or principal payments are required until the mortgage becomes due.
Full repayment of the mortgage is due when the property is sold or transferred, or when the borrower passes away, moves, or defaults.
Eligibility is determined using the borrower’s age and a percentage of the home’s appraised value.
Interest accrues until the mortgage is repaid, and as such, the home’s equity may decrease as the interest increases throughout the life of the mortgage.
It’s non-amortizing and there is no maturity date.
An Overview of your PATH Home Plan options
The way it works depends on whether you would like to take the amount you’re eligible for upfront as a one-time advance (an Initial Advance) or whether you’d like to spread it out over the years as Single Advances and/or Recurring Advances. Choosing your PATH Home Plan reverse mortgage should also be based on the mortgage type (fixed or adjustable rate) that works best for you.
Find out more about the types of advances.