Reverse Mortgage Rates Alberta: Compare the Best Options

Get An Estimate
See How Much You Can Borrow Today!

Reverse mortgage rates - Reverse mortgage calculator

Discover the Best Reverse Mortgage Rates in Alberta

 

 

For Alberta homeowners aged 55 and older, reverse mortgages offer a great way to unlock the equity in your home without selling or making monthly payments. Whether you’re in Calgary, Edmonton, or any other city in Alberta, understanding the current reverse mortgage rates is essential to making an informed financial decision.

 

 We’ll also provide an overview of the current rates from top lenders like HomeEquity BankCHIP Reverse Mortgage, Bloom Reverse Mortgage and Equitable Bank Reverse Mortgage.

What Are Reverse Mortgage Interest Rates?

 

Reverse mortgage rates are the interest rates applied to the money you borrow against your home’s equity. Unlike a traditional mortgage, reverse mortgages don’t require monthly payments. Instead, the loan and accrued interest are repaid when you sell your home, move into long-term care, or pass away. Reverse mortgage rates are generally higher than traditional mortgage rates because the lender takes on more risk by deferring repayment until the loan matures.

Current Reverse Mortgage Rates Alberta

Here are the current reverse mortgage rates offered by major lenders in Alberta:

 

LenderFixed RateVariable Rate                 APR Range
HomeEquity Bank (CHIP)7.00% – 8.95%  6.65% – 8.50%               7.5% – 9.9%
Equitable Bank7.25% – 9.10%6.90% – 8.75%               7.6% – 10.1%

 

These rates can vary depending on the loan amount, whether you choose a fixed or variable rate, and your home’s location within Alberta.

 

 

For more details, visit the Financial Consumer Agency of Canada

Alberta Reverse Mortgage Statistics from 2018 to 2023

 

The popularity of reverse mortgages has been rising steadily across Alberta, especially in key cities like Calgary and Edmonton. Here are some of the latest statistics on reverse mortgage usage in Alberta:

  • Reverse Mortgage Growth: Alberta has seen a 12% year-over-year increase in the number of homeowners using reverse mortgages.
  • Average Home Value: In 2023, the average home value in Alberta was approximately $474,000, providing significant equity for homeowners to tap into.
  • Total Reverse Mortgage Debt in Alberta: The total reverse mortgage debt in Alberta has grown to $690 million, contributing to the nationwide increase in reverse mortgage demand.
 
Steady Increase In Reverse Mortgage Uptake In Alberta

 

Here is the graph showing the steady increase in reverse mortgage uptake in Alberta from 2018 to 2023, with a notable spike in 2022 and 2023

How Reverse Mortgage Rates in Alberta Are Calculated

Several factors influence the interest rates you’ll receive on a reverse mortgage in Alberta:

  1. Your Age: The older you are, the more of your home’s equity you can access. Older homeowners typically qualify for larger loan amounts.
  2. Home Value: Alberta’s real estate market plays a role in determining the amount you can borrow. Higher home values in cities like Calgary and Edmonton may allow for higher loan amounts.
  3. Loan Amount: The amount of money you choose to borrow will also impact the interest rate. Larger loan amounts may come with slightly lower rates.
  4. Fixed vs. Variable Rates: Fixed rates provide stability, while variable rates may start lower but fluctuate with market conditions.

Get An Estimate
See How Much You Can Borrow Today!

Reverse mortgage rates - Reverse mortgage calculator

Fixed vs. Variable Reverse Mortgage Rates in Alberta

 

When deciding between fixed and variable rates for your reverse mortgage, consider the following:

  • Fixed Rates: These offer the benefit of a stable interest rate for the duration of your loan, ensuring predictability and no surprises in terms of how much interest will accumulate.

  • Variable Rates: Variable rates are tied to market conditions, meaning they can fluctuate over time. While they often start lower than fixed rates, there’s a possibility of increases in the future.

 

Get An Estimate
See How Much You Can Borrow Today!

Reverse mortgage rates - Reverse mortgage calculator

Compare Reverse Mortgage Rates from Alberta Lenders

HomeEquity Bank (CHIP Reverse Mortgage)

  • Fixed Rates: 7.00% – 8.95%
  • Variable Rates: 6.65% – 8.50%
  • Why Choose CHIP?: HomeEquity Bank offers the most well-known reverse mortgage in Canada, allowing Alberta homeowners to unlock up to 55% of their home’s equity. CHIP also provides a no-negative-equity guarantee, ensuring you will never owe more than your home is worth when it’s sold.

Equitable Bank Reverse Mortgage

  • Fixed Rates: 7.25% – 9.10%
  • Variable Rates: 6.90% – 8.75%
  • Why Choose Equitable Bank?: Equitable Bank offers competitive rates and flexible loan options, including both fixed and variable rates. This allows Alberta homeowners to tailor the reverse mortgage to their specific financial needs.
For detailed information, consult the Government of Canada’s reverse mortgage guide.

Alberta’s Real Estate Market and Reverse Mortgages

Alberta’s real estate market plays a key role in determining how much equity you can access through a reverse mortgage. Here are some insights into the Alberta housing market as of 2023:

  • Calgary: The average home price in Calgary is $541,000, providing significant equity for homeowners to tap into.
  • Edmonton: Edmonton’s average home value is $384,000, offering homeowners a valuable source of potential income during retirement.

Reverse mortgage rates in Alberta are impacted by the property values in your specific location. Homes in higher-value areas may qualify for larger loan amounts at more competitive rates.

 

To stay informed on mortgage trends,  visit Bank of Canada’s website.
 

 

You can also check the larest reverse mortgage rates by visiting one of Canada’s top rate comparison sites, Reverse Mortgages Approved.

 

Why Are Reverse Mortgage Rates Higher Than Traditional Mortgages?

Reverse mortgage rates are typically higher than those of traditional mortgages due to the nature of the loan. Since repayment is deferred until the home is sold, moved out of, or the homeowner passes away, lenders take on greater risk. This deferred repayment structure means that lenders charge higher rates—usually 1.5% to 2% above regular mortgage rates—to compensate for the risk and lack of monthly payments.

 

Is a Reverse Mortgage Right for You in Alberta?

Deciding whether a reverse mortgage is right for you depends on your financial situation, your retirement goals, and how much equity you want to access. Here’s a quick comparison of reverse mortgages versus other financial options available in Alberta:

 

 

FeatureReverse MortgageHELOCPersonal Loan
Interest Rates7% – 10%4% – 7%6% – 12%
Monthly PaymentsNoneRequiredRequired
Repayment TermsWhen the home is soldMonthly paymentsMonthly payments
Tax-Free CashYesNoNo
Impact on Government BenefitsNo impactNo impactPotential impact

Reverse Mortgage Alberta FAQs

  • Market interest rates, loan amount, age, and home value can all impact the rate you’re offered for a reverse mortgage.

  • Reverse mortgage rates can be either fixed or variable, depending on your preference. Fixed rates remain stable, while variable rates may fluctuate.

Reverse mortgage rates are higher due to the deferred repayment structure, where the loan and interest are repaid when the home is sold.

The interest rate determines how much interest accumulates over time. Since you don’t make monthly payments, the loan balance grows until it’s repaid.

No, reverse mortgage payments are tax-free, and they won’t impact your Old Age Security (OAS) or Guaranteed Income Supplement (GIS).

 

Expect costs like appraisal fees, legal fees, and administrative charges, which vary by lender.

Yes, you can sell your home at any time, but the reverse mortgage balance must be repaid from the proceeds.

Yes, most lenders allow early repayment, though penalties may apply depending on the contract terms.

Contact Us to Learn About the Best Reverse Mortgage Rates in Alberta

 

If you’re interested in learning more about reverse mortgage rates in Alberta or need help finding the best rate for your situation, contact us today for a free consultation. Our team can help you compare rates from top lenders and find the best solution for your financial goals.

 

Citadel Mortgages is one of Canada’s leading brokerages specializing in reverse mortgages. Visit Citadel Mortgages to learn more today.

 

Get An Estimate
See How Much You Can Borrow Today!

Reverse mortgage rates - Reverse mortgage calculator

Reverse Mortgage Calculator: Find Out How Much You Can Borrow

Curious about how much of your home equity you can unlock with a reverse mortgage? Our easy-to-use Reverse Mortgage Calculator can help you estimate how much you may qualify for based on your home’s current value, your age, and other key factors. This personalized tool gives you a clearer understanding of your financial options, helping you determine whether a reverse mortgage is the right solution for your retirement needs.

Best Mortgage Rates In Canada

5-Year Variable Mortgage Rates

5.40%

5 Year Fixed Mortgage Rates

4.29%

save-icon

Yes

Pre-approval

finance-13-5

15%

Pre-approval

download__1_-removebg-preview

15%

Lump sum pre-payment