Reverse Mortgages and 5-Year Variable Rates in Canada – October 14, 2024

Reverse Mortgages in Canada (Updated October 14, 2024)

Reverse mortgages are a financing solution for homeowners aged 55 and over, allowing them to access the equity in their home without selling. This type of loan is popular for supplementing retirement or financing major projects while continuing to live in the property.

How it works:
- The loan is secured by the home’s value.
- No monthly payments are required; the balance is repaid when the home is sold or the owner passes away.
- Funds received are tax-free.
- The amount depends on the owner’s age, home value, and location.

5-Year Variable Mortgage Rates as of October 14, 2024

Here are the current 5-year variable mortgage rates offered by major Canadian banks. Note: Rates are subject to change and may vary depending on borrower profile. Always confirm with the lender.

• RBC Royal Bank: 6.30%
• TD Canada Trust: 6.35%
• Scotiabank: 6.25%
• BMO Bank of Montreal: 6.40%
• CIBC: 6.29%
• National Bank: 6.20%
• Desjardins: 6.15%

Sources and rate verification:
- RBC
- TD
- Scotiabank
- BMO
- CIBC
- National Bank
- Desjardins

Key Takeaways

• Reverse mortgages are a specialized tool, mainly for those 55 and older.
• 5-year variable rates are generally lower than fixed rates but can fluctuate.
• Always consult a mortgage specialist for personalized advice.

This article is for informational purposes only and does not constitute official financial advice.