Reverse mortgages are becoming more popular and more mainstream. There are now three main reverse mortgage lenders in Canada, and all three (3) lend in the greater Victoria area. Here are some of the key pros & cons for using each of them.
1. HomeEquity Bank / CHIP Reverse Mortgage:
HomeEquity Bank is the most established reverse mortgage provider in Canada, offering the CHIP Reverse Mortgage. It has been in the business for over 30 years, helping thousands of Canadians unlock the equity in their homes.
PROS: HomeEquity Bank only offers reverse mortgages and has amazing customer service as well as very detailed or specific reverse mortgage offers. You can do more with a CHIP reverse mortgage than its newer competitors. CONS: Set up fees and interest rates are the highest of the three lenders.
2. Equitable Bank:
Equitable Bank was the second major player in the reverse mortgage market, providing a competitive alternative to the CHIP Reverse Mortgage.
PROS: Equitable Bank consistently sets its interest rates lower than CHIP, and the set-up fees are close to half as much as CHIP. CONS: Fewer options and customer support is less responsive to reverse mortgage clients as “EQ”, Equitable Bank doesn’t just offer reverse mortgages.
3. Bloom Financial:
Bloom Financial is the newest entrant in the Canadian reverse mortgage market, but it’s quickly making a name for itself. Like CHIP, Bloom only offers reverse mortgages and was founded by a former CHIP employee. Bloom offers one reverse mortgage product that is flexible and can come with a reverse mortgage credit card. This is a new, very flexible way to access unused reverse mortgage funds.
PROS: Better rates than CHIP, lower repayment penalties than CHIP, and the ease of access to unused reverse mortgage funds via the credit card make Bloom the most innovative offer, with great customer care. CONS: Fewer reverse mortgage products or offers than CHIP. Set up fees and rates are a little higher than EQ – Equitable Bank.
Not sure which lender is right for you?
We advise you seek independent reverse mortgage advice before contacting the lenders directly.
As a licensed mortgage broker that specializes in reverse mortgages,
I can help you save time and money, and it won’t cost you anything extra to use our services.
Call Richard Conover with Mortgages In Reverse: 778-400-1980.
