Scotiabank hits “inflection point” with successful multi-product mortgage strategy + MORE Sep 1st

More than ever, Canadians are relying on reverse mortgages—a “don’t-pay-till-you-die” option to borrow up to 55% of the appraised value of your home—and the trend is turning conventional wisdom about debt and retirement on its head. While past generations fought hard to avoid debt in their golden years, data from the Office of the Superintendent of Financial Institutions (OSFI)—the federal government agency that supervises and regulates banks, insurance companies, and trust and loan companies—confirms that reverse mortgages are on the rise in Canada, with over $8.2 billion in reverse mortgage debt outstanding at the end of June 2024 (the most recent data available at press time). That’s 18.3% higher than the same month last year, and 39.3% higher than two years ago.

If you’re considering a reverse mortgage as a way to fund or boost your retirement income, there’s a lot to consider. This explainer will take you through the ins and outs of reverse mortgages.

How does a reverse mortgage work?

While a conventional mortgage advances you funds in order to buy a house, a reverse mortgage is just the opposite: It advances you funds from the house you already own…

Deposit growth strategy pays off as Scotiabank strengthens customer relationships amid mortgage volume dip

Canadians continue to prefer the predictability of fixed-rate mortgages. In fact, a survey by the Canada Mortgage and Housing Corporation (CMHC) found that 69% of Canadians who undertook a mortgage transaction this year chose a fixed-rate mortgage over other types.

But picking a fixed mortgage rate can be problematic if you decide to sell your house and are forced to break your mortgage contract in the middle of your term. The penalties associated with breaking a fixed-rate mortgage can be very costly. 

Thankfully, many mortgage lenders allow you to avoid penalties by porting your mortgage, which means carrying your existing term and interest rate to your new property. 

So, how does porting a mortgage work, and when does it make sense? 

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