Compare the leading reverse mortgage companies in Canada to make an informed decision on the best choice for your financial future.The reverse mortgage company you choose will significantly impact your overall experience. It affects not only the loan terms, such as interest rates and fees, but also the quality of customer service you receive. A reputable company will provide transparent communication, clearly explain the terms and conditions, and offer responsive, supportive customer service whenever you need it. 

With several options available throughout Canada, understanding what each company offers will help you make an informed choice that aligns with your financial needs and goals. This guide will compare the leading reverse mortgage companies in Canada, helping you decide which one is best suited for you.

What is a reverse mortgage?

A reverse mortgage is a financial product that allows homeowners aged 55 and older to borrow money against the value of their home. Unlike a traditional mortgage, there are no monthly mortgage payments required. Instead, the loan is repaid when the homeowner sells the house, moves out permanently, or passes away. 

The funds from a reverse mortgage can be used in any way you like, whether that’s enhancing your lifestyle, paying off debts, or addressing unexpected expenses.

Read more: What is a reverse mortgage? Everything you need to know

What makes a good reverse mortgage lender?

Interest rates and fees

The interest rates and fees associated with a reverse mortgage are important factors to consider. A lower interest rate can save you significant money over time, while lower fees can reduce the overall cost of the loan.

Customer service and support

Excellent customer service and support will make your life easier. The best lenders answer your questions promptly, guide you through the process, and provide ongoing support.

Loan terms and conditions

The terms and conditions of the loan should be clear and favourable. This includes understanding the repayment terms, loan limits, and any additional conditions that may apply.

Reputation and reviews

Researching the reputation and customer reviews of each lender can provide insights into their reliability and customer satisfaction. Look for companies with positive feedback and a strong track record.

Read more: How does a reverse mortgage work in Canada (with real world examples)?

The best reverse mortgage companies in Canada

1. Bloom Finance 

Bloom is a leading reverse mortgage provider in Canada known for competitive rates and exceptional customer service. They place a strong emphasis on transparency and support, ensuring that clients fully understand their options and feel confident in their decisions. Bloom Finance stands out due to its personalized approach, making the reverse mortgage process as straightforward and reassuring as possible.

Bloom isn’t burdened by legacy bank technology, so it can be more innovative and provide smooth, pleasant customer experiences through new products like the Bloom Prepaid Mastercard.

You can use Bloom’s free calculator to see how much money you could qualify for. 

Key features

Competitive interest rates

Bloom offers some of the most competitive interest rates in the market, helping clients save money over the term of their loan.

Flexible loan options

Clients can choose between lump sums, regular payments, or a mix.

Home equity guarantee  

Bloom offers a Home Equity Guarantee, ensuring that even if your home’s value decreases, you will never owe more than its fair market value.

Transparent fee structure

They believe in full transparency, with no hidden fees, ensuring clients are aware of all costs upfront.

Home Equity Prepaid Mastercard  

You can spend up to $2,000 a month, with no payments required until you sell your home or pass away.

Excellent customer service

Bloom Finance prides itself on top-notch customer service, providing comprehensive support throughout the process.

Hassle-free appraisal

In most cases, they don't need to enter your home to conduct an appraisal. The appraisal cost is deducted from the proceeds, so you pay nothing out of your own pocket.

Fast approval

After the appraisal, you’ll get a decision within a few days, making the process quick and hassle-free.

Comprehensive support

From initial consultation to finalizing the loan, Bloom provides ongoing support to help clients every step of the way.

Educational resources

They offer a wealth of information to help clients make informed decisions about reverse mortgages.

2. HomeEquity Bank (CHIP)

Another of the three reverse mortgage provider in Canada, HomeEquity Bank is well-known for its Canadian Home Income Plan (CHIP) reverse mortgage product, which has been serving Canadians for many years. They offer various options and have a strong reputation in the industry.

Key features

Long-standing reputation

With a history of providing reverse mortgages in Canada, HomeEquity Bank is a trusted name.

Flexible loan options

Clients can choose between lump sums, regular payments, or a mix.

Customer support

HomeEquity Bank is known for its responsive and helpful customer service team.

Educational tools

They provide a number of resources to educate potential clients about reverse mortgages.

3. Equitable Bank

The other bank offering reverse mortgages in Canada, Equitable Bank is known for offering flexible financial solutions tailored to meet the diverse needs of Canadian homeowners. They aim to provide a straightforward and transparent reverse mortgage experience, focusing on helping seniors access the equity in their homes to enhance their retirement years.

Flexible loan options

Clients can choose between lump sums, regular payments, or a mix.

Customer support

Equitable Bank provides clear, supportive guidance throughout the process.

Holistic approach 

They often work in tandem with financial advisors to ensure that the reverse mortgage fits well within an overall retirement strategy.

What to consider before getting a reverse mortgage

Before deciding on a reverse mortgage lender, there are a few things you should ask yourself.

What are your financial needs?

Think about why you need a reverse mortgage and how it fits into your overall financial plan.

How will interest rates and fees add up?

Reverse mortgage interest rates are typically higher than those of traditional mortgages due to the unique nature of the loan. Since borrowers are not required to make monthly payments, the interest compounds over time, which means the longer the loan is outstanding, the more interest will accrue. This can significantly increase the total amount owed by the time the loan is repaid, either when the home is sold or upon the homeowner's passing.

In addition to interest, several fees are typically associated with reverse mortgages, including:

• Origination fee: Charged by the lender for processing the loan.
• Appraisal fee: Covers the cost of determining the current market value of your home.
• Closing costs: Similar to those of a traditional mortgage, including fees for credit checks, legal services, and title insurance.
• Service fees: Some lenders charge monthly servicing fees to manage the loan account.

Do I need professional advice?

Consult with a financial advisor to ensure that a reverse mortgage is the best option for you.

Are the terms clear?

Make sure you fully understand the terms and conditions of the loan, including repayment obligations.

How to choose the best reverse mortgage company for you

Assess your needs and situation

Evaluate your financial needs, long-term goals, and personal situation. This will help you determine which lender offers the best product for your circumstances.

Questions to ask potential lenders

• What are the interest rates and fees?
• What are the loan terms and conditions?
• How do they handle customer support and service?
• What is their reputation and what do customer reviews say?

Tips for getting the best reverse mortgage deal

Research multiple lenders

Comparing different lenders can help you find the best rates and terms. Don't settle for the first offer you receive.

Understand the fees

Make sure you understand all the fees involved in the reverse mortgage to avoid any surprises.

Consider your long-term needs

Think about how the reverse mortgage will impact your long-term financial situation. Ensure it aligns with your retirement goals.

Seek professional advice

A financial advisor can provide valuable insights and help you make the best decision for your situation.

Frequently asked questions

How does a reverse mortgage work?

A reverse mortgage allows homeowners aged 55 and older to borrow money against the value of their home without requiring monthly payments or taxes. The loan is repaid when the borrower sells the house, moves out permanently, or passes away.

For more detailed information, visit How Does a Reverse Mortgage Work in Canada (With Real World Examples).

What is the minimum age for a reverse mortgage?

The minimum age to qualify for a reverse mortgage in Canada is 55 years old.

Is a reverse mortgage better than a HELOC?

It depends on your financial situation and goals. A reverse mortgage provides tax-free cash without monthly payments, while a HELOC requires regular repayments. For a detailed comparison, visit [Reverse Mortgage vs HELOCs Key Differences Explained]().

How high are reverse mortgage rates?

Reverse mortgage rates are generally higher than traditional mortgage rates but vary depending on the lender and the terms of the loan. It's important to compare rates from different lenders.

What happens to my reverse mortgage if I decide to sell my home or move?

If you sell your home or move, the reverse mortgage becomes due. The loan, including interest and fees, must be paid off from the proceeds of the sale.

What will happen to my government benefits?

The money you receive from a reverse mortgage does not affect Canada Pension Plan (CPP), Guaranteed Income Supplement (GIS), or Old-Age Security (OAS) benefits that you may be receiving.

Conclusion

Choosing the right reverse mortgage company is key to ensuring a positive experience. The company you select will influence not only the loan terms, such as interest rates and fees, but also the quality of customer service you receive. 

For a no-obligation conversation about whether a reverse mortgage is right for you, contact Bloom at 1-866-882-5666, or leave your contact information here, and we'll call you at your preferred time.

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