What happened
Something unusual just happened in the reverse mortgage market: all four Canadian providers cut their rates within weeks of one another, according to reporting by Canadian Mortgage Trends. The drivers are cheaper institutional funding and intensifying competition for a growing customer base.
Reverse mortgages let homeowners aged 55+ unlock home equity without selling or making monthly payments. Historically their main drawback has been pricing — rates run well above conventional mortgages. A competitive rate war narrows that gap and changes the math for retirees weighing their options.
“lower institutional funding costs and growing competition for an expanding market” — Why Canada's reverse mortgage rates are falling, Canadian Mortgage Trends
The EverLend take
If you or your parents have considered tapping home equity in retirement, the cost of doing so just dropped — but a reverse mortgage still isn't the only tool. A HELOC, a second mortgage, or downsizing each suit different situations. We can walk you through all four options side by side.
Source & further reading: Why Canada's reverse mortgage rates are falling on Canadian Mortgage Trends.
Wondering what this means for your own mortgage? Talk to an EverLend agent — no cost, no pressure.