Reverse Mortgage Requirements


reverse mortgagesA reverse mortgage from HomEquity Bank is a smart way for seniors to access the equity they’ve accumulated in their home as tax-free cash. Despite the fact that reverse mortgages have been in Canada since 1986, there is still a lot of misunderstanding.


  • Both you and your spouse must be over the age of 55
  • The reverse mortgage must be the first mortgage so if you have an existing mortgage it must be paid off with the reverse mortgage
  • Second mortgages are allowed but must be approved by HomEquity Bank
  • Tax arrears must be paid before funding or from funds
  • You must have adequate fire insurance
  • If another person other than a spouse is on title they must be removed before funding – only the people who took out the mortgage can be on title.
  • Both spouses do not need to be on title
  • You must get independent legal advise before signing mortgage documents – can be paid for from proceeds
  • A home appraisal is required – must be paid for by applicant at time of appraisal
  • Some properties may not be eligible – badly run down, seasonal, life lease, etc.
  • Minimum $25,000 initial advance – $10,000 for additional advances if required


  • Medical exams not required and medical issues are not an issue
  • Income is not an issue as long as you can pay the property taxes and regular household bills
  • No payments are required as long as at least one spouse live in the home
  • You will never be asked to sell your home
  • Amount owing will never exceed fair market value


  • Use the money for whatever you like – it is your money
  • Invest the money at a higher rate of return
  • Pay for home-care
  • Vacations
  • New car
  • Renovations
  • Help children with down-payments or schooling
  • The amount you are eligible for will depend on you age(s) and location and type of property. Rates are the same for all clients – only the maximum percentage you can borrow will change. You can borrow more as you get older.

ALL funds are tax free and will not affect your pensions.

If you have any further question, or would like to see how much you qualify for, please give me a call or email me.

For more information and to see how much you would qualify for contact:

Michael Curry – Certified Reverse Mortgage Specialist for HomEquity Bank – Canada’s only reverse mortgage provider.

705-717-5598 or 647-559-5049 email:

Please note: The above information may not be an exhaustive list and is only pertaining to Canadian properties.


TORONTO, Feb. 10, 2014 – HomEquity Bank, announced the launch of its newest and most innovative product offering for senior homeowners, HomEquity Bank Income Advantage.

With the Income Advantage, senior homeowners can access equity in their home through 2 separate accounts. The first account is set up for monthly advances and carries a low interest rate of Prime + 1.25%; the second account is set up for lump sum advances and carries a competitive 5 year rate. “This product was developed based on customer feedback and customer need for flexibility” said Steve Ranson, President & CEO, HomEquity Bank. Customers can start with initial advances as low as $500 per month and increase them over time.

With the HomEquity Bank Income Advantage homeowners do not have to make any payments – interest or principal – for as long as they live in the home and they are not subject to credit checks and income verification.

HomEquity Bank Income Advantage provides an opportunity for Financial Planners and Investment Advisors to work with their clients to develop a comprehensive retirement plan inclusive of assets in their portfolio (investments, pensions and home equity). This approach can potentially create tax deferral opportunities and help to optimize retirement income.

As Canadians are living longer and are more active in retirement, the strategy of using real estate as an integral part of seniors’ retirement planning is a sound solution that can help them achieve their overall financial goals,” said Steven Ranson, President and CEO, HomEquity Bank. “Over the past 12 months alone, we have seen a 25% increase in volume directly from homeowners looking to unlock the value of their home and enjoy life on their terms”.

HomEquity Bank Income Advantage is now offered from coast-to-coast directly from HomEquity Bank, as well as through its extensive referral network of banks, wealth management and mortgage professionals and additional information is available at


HomEquity Bank is a Schedule I Canadian Bank and is the only national provider of reverse mortgages to homeowners aged 55 and over, Canada’s fastest growing demographic segment. HomEquity Bank originates and administers Canada’s largest portfolio of reverse mortgages under the CHIP Home Income Plan and HomEquity Bank brands. HomEquity Bank has been the main underwriter of reverse mortgages in Canada since its predecessor, Canadian Home Income Plan, pioneered the concept in 1986.


Will the homeowner owe more than the house is worth?

The homeowner keeps all the equity remaining in the home. In our many years of experience, over 99% of homeowners have money left over when their loan is repaid. The equity remaining depends on the amount borrowed, the value of the home, and the amount of time that’s passed since the reverse mortgage was taken out.

Will the bank own the home?

No. The homeowner retains title and maintains ownership of the home. It’s required for the homeowner to live in the home, pay taxes on time, have property insurance, and maintain the property in good condition.

Will the homeowner be eligible if they have no income or poor credit?

Yes! Credit score or income verification is not required to qualify for a reverse mortgage. The amount of money the homeowner is eligible for is based on age, spouse’s age, location of the home, type of home, the amount of secured debt, and the home’s appraised value.

Should reverse mortgages only be considered as a loan of last resort?

No. Many financial professionals recommend a reverse mortgage to supplement monthly income instead of selling and downsizing, or taking out a conventional mortgage or a line of credit.

Should reverse mortgages only be considered as a loan of last resort?

No. Many financial professionals recommend a reverse mortgage to supplement monthly income instead of selling and downsizing, or taking out a conventional mortgage or a line of credit.

What fees are associated with a reverse mortgage?

There are one time fees to arrange a reverse mortgage such as an appraisal fee, fee for independent legal advice as well as our fee for administration, title insurance, and registration. With the exception of the appraisal fee, these fees are paid for with the funding dollars.

What if the homeowner can’t afford payments?

There are no monthly payments required as long as the homeowner is living in the home.

What if the homeowner has an existing mortgage?

Many of our clients use a reverse mortgage to pay off their existing mortgage and debts.

For more information please contact:

Michael Curry – Certified Reverse Mortgage Specialist for HomEquity Bank – Canada’s only Reverse Mortgage provider.

705-717-5598 or 647-559-5049

Or Visit:

VERICO The Mortgage Wellness Group Ltd.

T (705) 717-5598

F (705) 506-0501

Head Office:

35 Worsley Street Suite 201

Barrie, Ontario L4M 1L7

Brokerage 11970 Agent M1200155

Each office is independently owned and operated.