Reverse Mortgage Interest Rates

You will probably have a lot of questions regarding how the outstanding balance is calculated throughout the life of your reverse mortgage with Equitable Bank. The outstanding balance is made up of the principal (the amount you have borrowed), costs and fees, and interest (the percentage we charge for lending the money). You can choose to make prepayments toward your principal and interest at specific times, otherwise payments are only required when the mortgage is due.

Reverse Mortgage Rates

Mortgage 6 Month Fixed 1 Year Fixed 2 Year Fixed 3 Year Fixed 5 Year Fixed 5 Year Adjustable
Reverse Mortgage (Lump-Sum) Rate2 4.89% 3.49% 3.59% 3.69% 3.79% P + 1.79%
Annual Percentage Rate (APR)3 6.50% 4.31% 3.98% 3.93% 3.91% 4.39%
Reverse Mortgage Flex Rate 4.89% 3.69% 3.99% 4.09% 4.39% P + 1.94%
Annual Percentage Rate (APR)3 6.50% 4.51% 4.37% 4.32% 4.50% 4.54%

2 These interest rates only apply to certain transactions within Equitable Bank’s lending guidelines. Rates and conditions subject to change without notice.

3 APR means the cost of borrowing expressed as an annualized interest rate for the Interest Rate Term, based on the Initial Advance Amount, interest and any applicable fees. The APR figures above are based on the following:

  • A mortgage amount of $150,000 and the accumulated interest for the applicable interest rate term; plus
  • a set-up fee and a closing fee (varies by province); and
  • all funds drawn as an initial advance; and
  • no prepayments


Equitable Bank Reverse Mortgage Prime Rate (P) 2.45%
  • 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.

When is the mortgage due?

Since the Equitable Bank Reverse Mortgage is meant for long-term lending with no quantified term, the due date of the mortgage is established on the occurrence of any of these events:

  • Sale or transfer of the property
  • Default
  • When the last borrower moves into a long-term care or retirement residence
  • When the last borrower passes away

What do I have to pay on the mortgage due date?

  • Principal and accrued interest
  • Default expenses, if any
  • Fees and costs
  • Prepayment charge, if any

Can I make prepayments?

You can. Although no regular payments are required until the reverse mortgage becomes due, you have the benefit of prepayment privileges. This allows you to prepay your principal or interest without being subject to a prepayment charge (which can be calculated here). Of course, certain conditions must be met.

When can I make a prepayment without charge?1

Interest Payment

Interest Payment

Prepay any of your interest outstanding once per calendar month.

Principal Payment

10%

Prepay up to 10% of your principal once per 12-month period (starting from your initial advance).

After 5 Years

5

Prepay in excess of 10% of your principal or the entire outstanding balance within 30 days of an interest rate reset date.

After 10 Years

10

Prepay in excess of 10% of your principal or the entire outstanding balance at any time.

1Subject to certain conditions.

Note:
  • Any payments received will be applied first to fees and charges, then to interest before being applied to principal.
  • If you exceed your prepayment privilege, you will be subject to a prepayment charge and applicable fees.

When can I make a prepayment without charge?

Stay up to date, save time, and know where you stand with online access to all your reverse mortgage loan information through myEquitable. You’ll still receive paper statements, but for those moments you need quick and easy access to your account to check your balance, request scheduled advance changes, or download documents, it’s all available at your fingertips.

Manage Your Reverse Mortgage Online

Stay up to date, save time, and know where you stand with online access to all your reverse mortgage loan information through myEquitable. You’ll still receive paper statements, but for those moments you need quick and easy access to your account to check your balance, request scheduled advance changes, or download documents, it’s all available at your fingertips.

Why Choose Equitable Bank’s Reverse Mortgage Rates?

No Negative Equity Guarantee

Is there a chance I could owe more than fair market value of my home?

No, provided you have met your mortgage obligations, we guarantee the amount you owe to Equitable Bank on the due date will not exceed the fair market value.

What is the fair market value based on?

Fair market value is the amount that would be paid on the open market, on the applicable date, to buy the property, assuming there are no legal claims against the property. This value would be established by a certified home appraiser..

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