HEB Advantage is an innovative home equity loan designed to empower the transition from working years to retirement living.
It combines the flexibility of a traditional lending solution with the stability of a reverse mortgage — enabling homeowners aged 55-70 to unlock more of their home equity with manageable monthly interest payments.
HEB Advantage can be used to:
- Reduce monthly payment obligations with manageable monthly interest payments
- Consolidate debt obligations
- Access up to 59% of their home equity
- Take advantage of opportunities utilizing tax-free funds
Key features of HEB Advantage
Mandatory monthly interest payments
Monthly interest payments are required on a portion of the loan and remain fixed for the duration of the payment period.
10-year payment period
Mandatory monthly interest payments only apply for the first 10 years. After that, interest payments become optional.
Lump-sum disbursement
The approved loan amount is advanced as a one-time, lump-sum payment.
Prepayment privileges
Clients can repay up to 10% of the outstanding principal and interest annually without penalty
Repayment
The loan balance, including any accrued interest, is generally repaid when the home is sold, the homeowner permanently moves out of the property, or upon estate settlement.
Clients retain home ownership
Your clients retain ownership of their home and can continue living in the property while accessing the equity they have built over time.
HomeEquity Bank Prime Rate: 4.45%
The following is a summary of the current HEB Advantage interest rates and terms offered by HomeEquity Bank.
| Term | Posted Rate | Closing Fee1 | Annual Percentage Rate (APR)2 |
|---|---|---|---|
| Variable3 | 7.11% | $1,795 | 7.13% |
| 6-month | 6.99% | 7.01% | |
| 1-year | 7.59% | 7.60% | |
| 3-year | 7.29% | 7.30% | |
| 5-year | 7.54% | 7.55% |
1These fees may vary based on individual circumstances.
2APR is the estimated cost of borrowing for 5 years expressed as an annual percentage. This scenario is based on a mortgage of $150,000, a monthly interest payment of $361, and includes the applicable closing costs ($1,795 closing fee, $850 ILA fee, and $425 appraisal fee).
3Variable (Posted) refers to the HomeEquity Bank Prime rate plus a fixed spread of 2.66%. The fixed spread is guaranteed for 5 years.
Easy 3-step process
Calculate
Find out how much your client can get using the online calculator
Connect
Contact your Business Development Manager who will answer any questions you or your client may have and walk you through the straightforward application process.
Enjoy!
Your client receives their tax-free money!
HEB Advantage is an innovative home equity loan designed to bridge the transition from working to retirement. It combines the flexibility of traditional lending with the stability of a reverse mortgage, enabling homeowners aged 55-70 to unlock more of their home equity with manageable monthly interest payments.
This product is best suited for homeowners aged 55 to 70 who have strong credit, stable income, and are comfortable making monthly payments for a defined period. It is designed for homeowners who are looking to:
- Improve cashflow by reducing monthly payment obligations as they transition into retirement
- Unlock additional home equity (up to 59%) for planned or unexpected financial needs
- Aged 55-70
- Own a primary residence in Canada
- Have a minimum appraised home value of $250,000
- Have a 650+ Credit Score
- Maximum TDSR of 42%
- Must have a full home appraisal conducted
- Retirement income (CPP, OAS, pensions) is generally acceptable if the TDSR is within limits
- Employment or business income must be stable and ongoing
- Underwriting may require verification of eligible liquid assets (RRSPs, TFSAs, stocks, bonds)
- Cryptocurrency is not considered an eligible asset
No. The monthly interest payment is mandatory during the payment term, at the amount set. This is a core condition of the product and cannot be waived or adjusted.
No. The required monthly interest payment amount remains fixed, even if interest rates change.
They are mandatory for a 10-year term, after which they become optional.
Clients remain eligible for up to 10% annual prepayment. Optional interest payments are not available during the mandatory payment term.
Do not recommend HEB Advantage if:
- The client is uncomfortable with monthly payments
- The Credit Score is below 650
- Income is unstable or insufficient
- TDSR would exceed 42%
No. HEB Advantage is provided as a single lump-sum advance, with 100% of the approved funds advanced at funding. Subsequent advances are not available.
* Conditions apply. You must maintain the condition of your property and your taxes and insurances must be up to date. Guarantee, excludes administrative fees and interest accumulated after due date. Always consult your accountant or financial advisor.
