Tax-Free Income For Your Retirement

Rates (Interest Rates and Durations)

Out every 10 Canadians with a reverse mortgage product, 9 recommend it to other homeowners.

The homeowners can choose a fixed rate, or a variable rate. The homeowners can switch to either during the mortgage term itself, or at the end of the term. If the homeowners have a fixed rate and want to switch to another rate during the current term, then an interest rate differential may be applicable. If the homeowner has a variable rate, he or she can switch to a fixed rate at any time.

The homeowner does not have to re-qualify or pay for anything at the end of the mortgage term (6-month, 1-year, 2-year, 3-year, or 5-year). The bank will simply contact the homeowners, inform them of the banks updated interest rates, and the mortgage continues as before. Here are the current terms (durations), fees (paid to the bank out of the mortgage proceeds) and interest rates available today:

Duration (Term)

Interest Rate

Fee (Paid To The Bank)* 

Annual Percentage Rate (APR) ***

Fixed, 6 Months


$1,795 - $2,495

5.05% - 6.16%***

Fixed, 1 Year


$1,795 - $2,495

4.64% - 4.74%***

Fixed, 2 Years


$1,795 - $2,495

3.98% - 4.66%***

Fixed, 3 Years


$1,795 - $2,495

4.62% - 5.15%***

Fixed, 5 Years


$1,795 - $2,495

4.60% - 5.35%***



$1,795 - $2,495

4.59% - 5.05%***

For Quebec, closing fees are slightly higher.

* These fees may vary based on individual circumstances.

** Variable refers to the Prime Rate, currently 3.95%, plus a fixed spread of 1.99%. The fixed spread is guaranteed for 5 years.

*** APR is an estimated cost of borrowing for 5 years shown as an annual percentage. In the examples in this table, the APR is based on a mortgage of $150,000 (including applicable closing costs).

“The reverse mortgage frees you up to move forward in more positive ways, rather than being forced into a situation you’re not too happy with.” - Brigitte V