Home Trust Reverse Mortgage

Home Trust Reverse Mortgage Rates

Home Trust Reverse Mortgage at a Glance

What is the Home Trust EquityAccess Reverse Mortgage?

The Home Trust Reverse Mortgage is officially called the EquityAccess Reverse Mortgage. A reverse mortgage allows eligible homeowners to borrow against the equity in their home while continuing to live there.

Instead of selling your home, you can convert part of your home equity, up to 59% of it, into cash. This money is tax-free and can be used for everyday retirement expenses, debt repayment, home repairs, healthcare costs, helping family, or improving your financial flexibility.

Unlike a regular mortgage, a reverse mortgage does not require regular monthly mortgage payments. The interest is added to the loan balance, and the mortgage is repaid later when the home is sold, the borrower moves out permanently, or the last borrower passes away.

This can make it useful for seniors who are “house rich but cash poor,” meaning they have a valuable home but limited retirement income.

How Home Trust's Reverse Mortgage Is Different

Home Trust's EquityAccess lineup includes three product choices, which can make it more flexible depending on how you want to receive your money.

The main difference is how the funds are advanced and how much equity you may be able to access.

EquityAccess

EquityAccess is the standard option. It provides funds of up to 59% of the home's appraised value as a single lump-sum advance.

This may be useful if you have a large one-time expense, such as paying off an existing mortgage, consolidating debt, completing major home repairs, or helping a family member with a major cost. It also has the lowest reverse mortgage rate.

EquityAccess+

EquityAccess+ combines an initial lump-sum advance with scheduled advances, allowing borrowers to access up to 59% of their home's appraised value.

This can be useful if you need some money now but do not want to borrow the full amount all at once. Borrowing money over time may help you manage retirement cash flow by receiving a steady amount to support your living expenses.

EquityAccess Boost

EquityAccess Boost is designed for eligible homeowners aged 70+ who want access to a greater amount of home equity, up to 59% of their home's appraised value.

This option may be useful for older homeowners who need a larger amount, but borrowing more can also mean interest adds up more quickly. Before choosing this option, it is important to understand how it may affect your remaining home equity over time. The interest rate is also the highest with this product.

How Much Can You Borrow With a Home Trust Reverse Mortgage?

Home Trust says eligible homeowners may be able to access up to 59% of their home's appraised value. However, not everyone will qualify for the maximum amount. You can estimate how much you may be eligible to borrow up to using a reverse mortgage calculator.

Your approved amount will depend on factors such as:

• Your age
• Your spouse or co-owner's age, if applicable
• Your home's appraised value
• Your province and postal code
• Your property type and condition
• Any existing mortgage or secured debt
• The EquityAccess product you choose

In general, older homeowners and higher-value properties qualify for a larger reverse mortgage amount.

If you already have a mortgage or HELOC on the home, it will need to be paid off using the reverse mortgage proceeds.

How Can You Receive the Money?

One important part of choosing a Home Trust reverse mortgage is deciding how you want to receive your funds.

Depending on which EquityAccess product you choose, you can receive money as:

• A single lump sum
• An initial advance plus scheduled advances, as monthly, quarterly, semi-annual, or annual advances, only with EquityAccess+ and EquityAccess Boost

A lump sum may be better if you need to pay off a large debt or mortgage right away. Scheduled advances may be better if you want extra retirement income spread out over time. Home Trust requires a minimum initial advance amount of $25,000.

The choice matters because interest is charged on the money you borrow. Taking more than you need upfront increases your long-term borrowing cost.

What Are Current Home Trust Reverse Mortgage Rates?

A reverse mortgage may not require regular payments, but that does not mean it has no cost. Interest is added to the loan balance, which means the amount you owe grows over time unless you make optional payments.

When comparing Home Trust reverse mortgage rates, ask your broker for:

• The current rate
• The APR
• Whether the rate is fixed or variable
• The term length
• How often is interest added
• What happens when the rate resets
• Whether optional interest payments are allowed
• The total estimated cost over 5, 10, and 15 years

Reverse mortgage rates are higher than regular mortgage or HELOC rates. That is why it is important to compare Home Trust with other reverse mortgage lenders and other borrowing options.

Home Trust Reverse Mortgage Fees

Home Trust reverse mortgage fees include setup, appraisal, legal, and closing costs. Independent legal advice is also required before closing. Home Trust's set-up fee, which doesn't include appraisal, legal, and closing charges, is currently $995. The annual percentage rate (APR) shown includes these estimated fees.

Some fees may be deducted from your initial advance, while others may need to be paid separately. Ask your broker for a written fee breakdown before you sign.

Important fees to ask about include:

• Setup fee
• Appraisal fee
• Legal fees
• Independent legal advice cost
• Closing charges
• Discharge fee
• Prepayment charges
• Any fees for future advances or rate resets

Can You Make Payments?

Regular payments are not required with a Home Trust reverse mortgage. However, Home Trust borrowers are able to make monthly interest payments based on their prepayment privileges. This can be helpful if you want to slow down the growth of your loan balance.

For example, if you make optional interest payments, your mortgage balance grows more slowly than if all interest is added to the loan. This helps you preserve more home equity for later.

However, optional payments may not be right for everyone. If your retirement income is limited, no monthly payments may be more important than reducing the balance.

No Negative Equity Guarantee

Home Trust's reverse mortgages include a payment guarantee, often called a no negative equity guarantee.

This means that if you meet your mortgage obligations, such as keeping up with maintenance and your property taxes, you should not owe more than the gross proceeds from the sale of your home. If your home is sold and the sale price is not enough to cover the reverse mortgage balance, Home Trust will cover the difference.

This can provide peace of mind, but it does not remove all responsibilities. You must still follow the mortgage agreement, pay property taxes, keep home insurance, and maintain the property.

What Can You Use a Home Trust Reverse Mortgage For?

The money from a Home Trust reverse mortgage can be used for many purposes.

Common uses include:

• Paying off an existing mortgage
• Reducing credit card or line of credit debt
• Covering home renovations or accessibility upgrades
• Paying for healthcare or home care
• Helping children or grandchildren
• Creating extra retirement income
• Covering day-to-day expenses
• Giving an early, living inheritance

The best use is usually something that improves your financial stability, reduces stress, or helps you stay safely in your home.

When a Home Trust Reverse Mortgage May Make Sense

A Home Trust reverse mortgage may be worth considering if you:

• ✔️ Want to stay in your home instead of downsizing
• ✔️ Have significant home equity but limited retirement income
• ✔️ Need to pay off an existing mortgage or debt
• ✔️ Want access to cash without required regular payments
• ✔️ Live in a province where Home Trust offers the product
• ✔️ Are comfortable with your loan balance growing over time

It may be especially useful for seniors who want to age in place and avoid selling their home during retirement.

When It May Not Be the Best Fit

• ❌ Plan to sell your home soon
• ❌ Want to leave as much equity as possible to your estate
• ❌ Can qualify for a cheaper HELOC or mortgage refinance rate
• ❌ Only need a small amount of money for a short time
• ❌ Are uncomfortable with interest being added to your balance

A reverse mortgage can be helpful, but it is not the cheapest way to borrow money. It is usually best for homeowners who value staying in their home and avoiding regular payments.

CHIP vs Home Trust Reverse Mortgage

Many homeowners compare CHIP reverse mortgages versus Home Trust Reverse Mortgage when looking at reverse mortgage options in Canada.

CHIP is offered by HomeEquity Bank and is Canada's most established reverse mortgage lender. Home Trust's EquityAccess Reverse Mortgage is a newer option available through mortgage brokers in select provinces.

The better choice depends on your province, age, home value, rate, fees, approved loan amount, and preferred payout structure.

Home Trust Reverse Mortgage vs HELOC

A Home equity line of credit, or HELOC, may have a lower interest rate than a reverse mortgage, but it usually requires regular payments and income qualification.

A Home Trust reverse mortgage may be easier for some retirees because regular payments are not required. It is also not as strict on credit score and income requirements. However, it costs more over time because interest is added to the balance.

Comparing Alternative Borrowing Options

Questions to Ask Before Applying

Before getting a Home Trust reverse mortgage, ask your mortgage broker:

1. How much can I borrow?
2. Which EquityAccess product am I eligible for?
3. What is the current interest rate and APR?
4. What fees will I pay?
5. Can I make optional interest payments?
6. How much could my balance grow in 5, 10, and 15 years?
7. What happens if I sell my home?
8. What happens if I move into long-term care?
9. What happens if one spouse passes away?
10. How much equity may be left for my estate?

A reverse mortgage should be easy to understand before you sign. If something feels unclear, ask for a plain-language explanation.

Bottom Line

The Home Trust EquityAccess Reverse Mortgage gives eligible Canadian homeowners 55+ a way to access home equity without selling their home or making required regular payments.

Its three-product lineup makes it different from a simple one-size-fits-all reverse mortgage. EquityAccess may work for homeowners who want a lump sum, EquityAccess+ may work for those who prefer scheduled advances, and EquityAccess Boost may help eligible homeowners aged 70+ access more equity.

However, a Home Trust reverse mortgage is still a loan. Interest is added over time, fees may apply, and your remaining home equity may shrink.

Before applying, compare Home Trust reverse mortgage rates, fees, reviews, calculator estimates, and eligibility with CHIP, Bloom, Equitable Bank, a HELOC, refinancing, and downsizing.

Frequently Asked Questions

What is the Home Trust Reverse Mortgage?

The Home Trust Reverse Mortgage is called the EquityAccess Reverse Mortgage. It lets eligible homeowners aged 55+ access home equity without selling their home.

Is Home Trust's reverse mortgage available across Canada?

No. Home Trust currently offers its reverse mortgage through mortgage brokers in Ontario, Nova Scotia, Alberta, and British Columbia.

Do I still own my home?

Yes. You remain the owner of your home. The reverse mortgage is a loan secured against the property.

Do I need to make monthly payments?

No regular mortgage payments are required. However, interest is added to the loan balance unless optional payments are made.

How much can I borrow?

Home Trust says eligible homeowners may be able to access up to 59% of their home equity, which would be up to 59% of your home's appraised value if you have no existing debt secured against the property. The exact amount depends on your age, home value, location, and product choice.

What is EquityAccess+?

EquityAccess+ is a Home Trust reverse mortgage option that combines an initial lump sum with scheduled advances.

What is EquityAccess Boost?

EquityAccess Boost is for eligible homeowners aged 70+ who want access to a greater amount of home equity.

Are Home Trust reverse mortgage funds taxable?

Reverse mortgage funds are generally not taxable because they are borrowed money, not income.

Is Home Trust better than CHIP?

Home Trust may be a good option if you live in an eligible province and want a broker-based reverse mortgage with different payout options. CHIP may be better for homeowners who want a more widely available reverse mortgage provider. The better choice depends on the rate, fees, loan amount, province, and payout structure.