Renewing a Reverse Mortgage? It's Your Choice

Already have a reverse mortgage? · Homeowners 55+

When your term ends, the rate resets — and you are free to renew with your current lender or move to another. With no payments, every fraction of a percent compounds on the whole balance. A free review shows what the next term will cost you either way.

What a rate difference costs when there are no payments

On a regular mortgage, payments shrink the balance. On a reverse mortgage nothing does — so interest compounds on everything you owe, and the lender's rate and fees are the only levers left. Over one five-year term:

Many reverse mortgages were arranged through a seniors' or veterans' association offer — a one-time rebate of a few hundred dollars at signing. That was a welcome gift at the start. At renewal it has no bearing on your next rate. Set the welcome gift beside the table above, then compare the coming term across every lender.

A small balance, a short remaining horizon, or a prepayment charge that outweighs the saving — then the honest answer is to renew where you are, and we will say so. The review is free either way.

Plans change in five years. A spouse may have passed, the house may need work, the kids may be buying. The renewal is when the structure can change with you.

Thirty unhurried minutes. You'll leave knowing what the next term costs where you are, what it would cost elsewhere, and whether moving is worth it — in writing.

A free review of your renewal against every Canadian reverse-mortgage lender — the saving shown net of every cost, and a straight answer.

Rate, setup fee, prepayment terms and how you receive the money — across every Canadian reverse-mortgage lender, including your current one.

Appraisal, independent legal advice, the new lender's setup fee and any prepayment charge, against the interest difference over the term. If it does not clear the costs, we say stay.

You stay in your home, on title, with the same no-negative-equity guarantee. Nothing about how you live changes.

Scheduled advances that arrive like a pension, with interest only on what is drawn.

For a roof, a renovation that lets you stay, care at home, or a gift to the kids while you are here to see it.

So the surviving partner is fully protected — the single most important thing to get right for a couple.

Fixed for a term, variable, or a lifetime fixed rate with no renewal reset at all — each has trade-offs we walk through.

No. At the end of a term the rate resets, and you can renew with your current lender or move to another. A new lender pays out the existing balance, and you stay in your home, on title, with the same no-negative-equity protection.

Prepayment charges typically decline over the term and are commonly waived or reduced at maturity, on the death of the last borrower, or on a move to care — the exact schedule depends on your lender and product. We confirm yours in writing before anything moves.

I got my reverse mortgage through a membership offer. Does that change anything?

A one-time welcome rebate of a few hundred dollars was paid when you signed. At renewal it has no bearing on your next rate. What matters now is the rate and fees for the coming term, compared across every Canadian reverse-mortgage lender.

Yes. Renewal is a natural moment to restructure — move from a lump sum to scheduled monthly advances, take a further advance for a repair or a gift, or add a spouse to title if that was missed. Each has trade-offs we walk through.

Because there are no payments, interest compounds on the whole balance. Half a percentage point on a $400,000 balance is roughly $13,500 more owed after five years, and the gap widens every term.

Already have a reverse mortgage? At renewal the rate resets and you can move lenders. See what a rate gap costs with no payments. Free renewal review.