Income Advantage is a reverse mortgage, a loan secured against the value of the home. With Income Advantage, clients can choose to receive monthly or quarterly payments, allowing for greater flexibility and cashflow planning. Unlike a loan or a regular mortgage, homeowners are not required to make regular mortgage payments. The loan is repaid only when the homeowner no longer live in the home.

The homeowner is required to keep the property in good condition and stay up-to-date with property taxes and home insurance. The proceeds of the mortgage loan are received tax-free and can be used however the homeowner chooses.

Your clients can use Income Advantage to:

  • Boost their cashflow
  • Pay down debt
  • Maintain their lifestyle
  • Meet unexpected expenses
  • Build a financial cushion
  • Take a vacation

Key features of Income Advantage

Clients retain home ownership

Your clients get to stay in their home and community. Homeowners retain title and maintain ownership for as long as they choose to stay in the home.

No regular mortgage payments

There are no regular mortgage payments until the homeowner moves, sells, or passes away. This frees up additional cash for any of their financial goals.

Proceeds are received tax-free

Homeowners can access up to 55% of their home’s value in tax-free cash. Because they are unlocking home equity, the funds are not added to their taxable income and do not affect income-tested benefits such as Old Age Security (OAS).

HomeEquity Bank Prime Rate: %

The following is a summary of the current Income Advantage interest rates and terms offered by HomeEquity Bank.

IMPORTANT: The Planned Advance Account must always have a variable interest rate term. The applicable interest rates can be found in the table below.

Planned Advance
Account Term
Planned Advance Interest Rate Lump-Sum
Account Term
Special Rate1 Closing Fee2 Annual Percentage Rate(APR)3
Variable5 % Variable4 % $ %
1-year % %
3-year% %
5-year % %
Planned Advance Account Term Planned Advance Interest Rate Lump-Sum
Account Term
Posted Rate Closing Fee2 Annual Percentage Rate(APR)3
Variable5 %
Variable5 % $ %
1-year % %
3-year % %
5-year % %

1 These rates are only available for new reverse mortgage originations in certain locations and are subject to meeting HomeEquity Bank’s credit granting criteria. Offer may be changed, extended or withdrawn at any time without notice. Rates are adjustments off of posted rates.

2These fees may vary based on individual circumstances.

3 APR is for years based on $ per month in planned advances and a $ initial advance. It is not for the full period of the mortgage and includes the applicable closing costs.

4 Variable (Special) refers to the HomeEquity Bank Prime Rate plus a fixed spread of %. The fixed spread is guaranteed for years.

5Variable (Posted) refers to the HomeEquity Bank Prime Rate plus a fixed spread of %. The fixed spread is guaranteed for years.

Easy 3-step process

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Find out how much your client can get using the online calculator.

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Contact your Business Development Manager who will answer any questions you or your client may have and walk you through the straightforward application process.

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Your client receives their tax-free money!

Income Advantage requires no health checks. Your client can qualify if they’re over 551, own the home, and use it as their primary residence.

1 This age requirement also applies to their spouse.

No. Your client’s other assets are completely protected.

Income Advantage lets your client access up to 55% of their home’s appraised value.

Income Advantage is a product of HomeEquity Bank, a Schedule 1 Canadian bank. It is available through all of Canada’s major banks, and through many credit unions, mortgage brokers, and financial advisors.

Your client can access their money in monthly or quarterly deposits into their bank account. There is an initial minimum advancement of $20,000 when your client starts with Income Advantage.

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.

No. It’s tax-free because you are unlocking home equity from your client’s primary residence.

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.

Yes. Your clients can repay the principal or interest at any time — in full or on an annual or monthly basis2.

2 A prepayment charge may apply.

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

* Always consult your accountant or financial advisor.


Income advantage resources

Keep your clients up-to-date with these downloadable Income Advantage resources.


Rates Sheet


Fact Sheet