Prepare Your Client for their Equitable Bank Reverse Mortgage

The Steps:

  • Calculate their maximum LTV
  • Determine whether your client prefers a one-time advance (an Initial Advance), Single Advances and/or Recurring Advances
  • Find out if they wish to schedule Recurring Advances
  • Determine whether they prefer a fixed or adjustable interest rate and the interest rate term
  • Determine their ongoing property-related expenses
  • Determine if they may want to change their mortgage type and interest rate term in the future

Calculate based on specific numbers:

Equitable Bank Reverse Mortgage Eligibility Calculator

Determine whether your client would like a one-time advance (an Initial Advance), Single Advances and/or Recurring Advances

If they would like to take their maximum eligible amount as a one-time advance:

  • That means they would be taking all their funds upfront
  • They can choose between adjustable and fixed interest rate terms

If they are not taking their maximum eligible amount, subject to a minimum Initial Advance of $25,000, they have options for their remaining funds:

  • They can choose between adjustable and fixed interest rate terms
  • Set up scheduled recurring advances
  • Leave room to add single advances at a later date
 

Recurring Advances

  • Are only available for an adjustable interest rate term
  • Can be scheduled at any time for up to 20 years
  • The minimum advance amounts vary by the frequency chosen:
    • $500 monthly
    • $1,500 quarterly
    • $3,000 semi-annually and
    • $6,000 annually
  • Are subject to the adjustable interest rate in effect at the time of each advance

Single Advances

  • Are available for adjustable and fixed interest rate terms
  • Can be disbursed on request any time after closing
  • The minimum advance amount is $5,000 (or the whole remaining amount if less than $5,000)
  • May be subject to a blended interest rate for fixed interest rate terms

Would your client like to schedule Recurring Advances? If so:

  • They can be scheduled at any time for up to 20 years
  • The minimum advance amounts vary by the frequency chosen: $500 monthly, $1,500 quarterly, $3,000 semi-annually and $6,000 annually
  • They are only available for an adjustable interest rate term
  • They are subject to the adjustable interest rate in effect at the time of each advance
  • A fee of $50 applies if a Recurring Advance is changed or scheduled after closing.

Determine whether your client would like a fixed or adjustable interest rate and their preferred interest rate term:

  • Interest is calculated based on a fixed or adjustable rate
  • Fixed rates are offered as 6 months, 1 year, 2 year, 3 year and 5 year terms
  • An adjustable rate is only offered as a 5 year term. The rate will be based on the Equitable Reverse Mortgage Prime Rate plus an adjustment factor
  • The interest rate displayed is dependent on the interest rate term selected in the drop down menu.
  • The Equitable Bank Reverse Mortgage Prime Rate (P) is the annual rate of interest that is established from time to time by Equitable Bank, at its discretion, as a point of reference.
  • An adjustable interest rate term consists of the Equitable Bank Reverse Mortgage Prime Rate plus or minus an adjustment factor and varies automatically if and when the Equitable Bank Reverse Mortgage Prime Rate changes.
  • Interest is calculated and charged daily based on the daily equivalent of a fixed or adjustable interest rate, compounded semi-annually (for a fixed rate) or monthly (for an adjustable rate), not in advance.
  • Rates are subject to change at any time without notice.

If your client wants to change their mortgage interest rate type (fixed or adjustable) and/or interest rate term:

They can choose to reset:

The annual interest rate will reset on the interest rate reset date throughout the life of the mortgage. Within 30 days of the interest rate reset date, your client can request a change to their interest rate term or mortgage interest rate type without charge.

They can choose to convert:

During the interest rate term, your client can also request to convert from an adjustable rate to a fixed rate or from a fixed rate to another fixed rate so long as the selected interest rate term is equal to or greater than the months remaining in their current interest rate term. Fees may apply.

Establish your client’s closing expenses:

  • Home appraisal fee
  • Independent legal advice fee
  • Setup fee, title insurance and closing service fees (deducted from the initial advance)
  • Legal fees for the lawyer closing the loan
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