Ontario mortgage broker Richard Hopkins says one of Canada’s four reverse mortgage lenders raised its five-year rate by 0.55 points on August 31 while two others held, opening the widest gap between lenders this year.

HAMILTON, Ontario – September 18, 2026 – Reverse mortgage rates in Canada have started to rise, and the four lenders are no longer moving together, according to a new report from Homestead Financial, an independent mortgage brokerage licensed by the Financial Services Regulatory Authority of Ontario.

HomeEquity Bank, the largest reverse mortgage lender in Canada, raised the advertised five-year fixed rate on its CHIP Reverse Mortgage from 6.39 per cent to 6.94 per cent effective August 31, 2026, according to the bank’s published rates. Two of the other three lenders held their five-year rates at July levels through mid-September. The gap between the lowest and highest advertised five-year reverse mortgage rates in Canada widened from 0.16 percentage points in July to 0.71 points.

The increase came while the Bank of Canada held its policy rate at 2.25 per cent. The report explains why: fixed reverse mortgage rates follow Government of Canada bond yields, not the policy rate. The five-year bond yield climbed from about 3.03 per cent in early July to 3.65 per cent on September 11, its highest level since May 2024. On September 16 the United States Federal Reserve raised its own rate for the first time since July 2023, and the Bank of Canada’s published deliberations warned that a Canadian increase could follow if energy prices spread into other prices.

“The Bank of Canada did not move, and a lot of homeowners will assume that means their reverse mortgage rate did not move either,” said Richard Hopkins, Mortgage Broker at Homestead Financial. “The bond market moved, one lender passed it on, and the others have not yet. For a homeowner comparing reverse mortgage rates this month, which lender they choose is worth more than it has been all year.”

On a $150,000 reverse mortgage with no payments made, the report calculates that the 0.55-point increase adds about $850 of interest in the first year and about $5,500 to the balance after five years. The difference between the lowest and highest advertised five-year rates today is worth about $7,100 over one five-year term on the same balance.

The report also notes that one lender is advertising a limited-time one-year rate below its posted rates until September 30, 2026, and explains why a one-year term suits some homeowners and not others, since a reverse mortgage resets to the lender’s rate of the day when each term ends.

The full report, including a dated record of Canadian reverse mortgage rates back to 2019 and a plain-language explanation of how bond yields reach a homeowner’s rate, is available at: https://reversemortgagebroker.ca/reverse-mortgage-rate-increase-september-2026/

Reverse mortgages let Canadian homeowners aged 55 and over borrow against home equity with no monthly mortgage payments. The loan is repaid when the home is sold or the last borrower moves out or passes away, and independent legal advice is required before closing in Ontario.

About Homestead Financial

Homestead Financial is an independent mortgage brokerage based in Hamilton, Ontario, licensed by the Financial Services Regulatory Authority of Ontario (brokerage licence #11711) and in business since 1999. The brokerage has funded more than 2,500 mortgages and is trusted by more than 1,200 Ontario homeowners. Richard Hopkins, Mortgage Broker (licence M16000896), specializes in reverse mortgages and compares every reverse mortgage lender in Canada for homeowners across Ontario. More at ReverseMortgageBroker.ca.

Media contact

Richard HopkinsMortgage Broker (M16000896)Office 905-690-6834Direct 905-690-6068 (call or text)Email richard.hopkins@homesteadfinancial.cahttps://reversemortgagebroker.caCatherine Evel & Richard Hopkins Mortgage TeamDominion Lending Centres Homestead FinancialIndependently Owned and Operated. Brokerage Licence #11711.

Media Contact
Company Name: Homestead Financial
Contact Person: Richard Hopkins
Email: Send Email
Phone: 289-208-5004
Address:26 Glaceport Ave
City: Dundas
State: Ontario
Country: Canada
Website: https://reversemortgagebroker.ca/reverse-mortgage-rate-increase-september-2026/?utm_source=abnewswire&utm_medium=press_release&utm_campaign=pr-rate-alert-sep2026

 

Press Release Distributed by ABNewswire.com

To view the original version on ABNewswire visit: Reverse Mortgage Rates in Canada Start Rising as Bond Yields Hit Two-Year High

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