RetireBetter

RetireBetter, Canadian reverse mortgage brokerage for people aged 55 and over

RetireBetter is a Canadian mortgage brokerage focused on reverse mortgages and home equity loans for homeowners aged 55 and over. The firm presents itself as the brokerage that arranges the most reverse mortgages in Canada and offers its services nationwide. It works with products from lenders such as CHIP Reverse Mortgages and EQ Flex Reverse Mortgages, among others.

What a reverse mortgage is according to RetireBetter

According to the firm's information, a reverse mortgage is a home equity loan that allows Canadian homeowners aged 55 and over to access up to 59% of the value of their home. It requires no monthly payments and does not need to be repaid until the homeowner sells the home, moves or passes away. The money can be used for any purpose and received as a lump sum or in installments. The company notes that the amount available depends on the applicant's age, the value of the home and its location, and that approval is not reduced by having low income or bad credit.

Uses and profiles it targets

RetireBetter directs these products to older people who want to manage debt after retirement, stop working and retire comfortably, maintain their standard of living or improve their financial situation in retirement. Among the cases it mentions are helping children buy a home, buying a second residence, renovating the home to continue living in it and covering expenses such as personal assistance. The firm also serves homeowners with children living with them, provided the children are not listed as owners of the home.

Products and comparison

The website compares three alternatives for older homeowners:

• Home equity line of credit (HELOC): variable rate, mandatory monthly payments, full income requirements and maximum loan of 65% of the home value.
• Reverse mortgage: variable or fixed rate, no regular payments, flexible income requirements, maximum loan of 59% of the home value and a guarantee that you will never owe more than the value of the home.
• Conventional mortgage: variable or fixed rate, mandatory monthly payments, full income requirements, maximum loan of 80% of the home value and the possibility of owing more than the value of the home.

The firm states that it can arrange reverse mortgages of up to 65% of the new home value, compared with the 59% obtained by dealing directly with HomeEquity Bank for a CHIP Reverse Mortgage.

Rates and conditions shown

The website's catalogue shows a table of rates and setup fees for fixed and variable rate products, with terms of one, two, three and five years. The published fixed rates range from 6.44% to 6.99%, and the five-year variable rates from 7.05% to 7.24%. The setup fees indicated are CAD 995.00 or CAD 1,795.00 depending on the product. The firm clarifies that the Prime Rate is 4.45%, that the rates correspond to Equitable Flex Lite and CHIP Mortgage, that they may change without notice and that they are subject to lender approval.

Application process

RetireBetter describes a four-step process: speak with a reverse mortgage expert to explore the options with no obligation, decide how to receive the funds (lump sum or over time), sign the documentation prepared by the firm and enjoy retirement with a no-payment, tax-free loan. The company notes that the borrower can make payments if they wish, although it is not mandatory, and that the lender adds the interest to the loan balance. It also indicates that there is no maximum age limit to qualify and that the older you are, the more you can qualify for.

Resources and customer service

The site includes a learning centre with articles on how reverse mortgages work in Canada, how they differ from those in the United States, interest rates, home equity lines of credit and common myths. It also offers a reverse mortgage calculator that does not require personal information, a downloadable complete guide and a frequently asked questions section. The firm publishes client testimonials from cities such as Vancouver, Ottawa, Toronto, Oakville, Calgary and Mississauga, and has a phone number and contact email.