A New Option for Homeowners 55 to 70: What You Need to Know About HEB Advantage

If you’re between 55 and 70, own your home, and have been told “no” by the bank, or “not enough” by a reverse mortgage, there’s a brand-new product coming that’s worth knowing about.

HomeEquity Bank, the lender behind the well-known CHIP Reverse Mortgage, is launching HEB Advantage at the end of October. It’s the first loan of its kind in Canada, a hybrid of a reverse mortgage and a regular mortgage. Here’s how it works, in plain language.

How it works

You receive one lump sum of up to 59% of your home’s value. The exact amount depends on where you live, your property, and your age. For the first 10 years, you make monthly interest payments on part of the loan. After year 10, there are no required payments at all. The loan is repaid when you sell, move into long-term care, or pass away.

To qualify, you’ll need a credit score of 650 or higher, verifiable income, reasonable debt levels, and a home worth at least $250,000. Launch rates are expected to run from about 6.99% to 7.59%.

Why it’s interesting

The big draw is access. HomeEquity Bank’s own example is a 60-year-old with an $835,000 home. A standard reverse mortgage would give him about $349,500. With Advantage, he could access roughly $470,000, about a third more. His monthly payment would be around $1,426, far lower than many HELOC or alternative-lender options.

That’s a real lifeline for people who are early retirees, working reduced hours, self-employed, or whose income just doesn’t fit the bank’s stress test. It also comes with a no-negative-equity guarantee, so you’ll never owe more than your home is worth, provided you stay in good standing. And unlike a private second mortgage, there’s no stressful renewal every year or two.

The honest part

A lower payment doesn’t mean a lower cost. Because you’re only paying part of the interest, the rest gets added to your balance. In that same example, if rates held steady, the balance could grow from $470,000 to over $710,000 in ten years. Prepayments are also limited to 10% per year, and there are penalties if you pay it off early in the first few years.

So who is it really for?

If you can qualify for a traditional HELOC and afford the payments, that’s usually the cheaper route, and your heirs will thank you. But if you need more than a reverse mortgage offers, can’t pass a traditional stress test, or love the idea of a 10-year finish line on payments, HEB Advantage could be a smart fit. Some families are even using it as part of estate planning, helping kids with an early inheritance without selling investments.

Let’s talk it through

Every situation is different, and that’s exactly why it pays to have someone in your corner. If you’re wondering whether this new option, a reverse mortgage, or a traditional HELOC makes the most sense for you, reach out. I’d be happy to walk you through the numbers, no pressure, no jargon.

Amanda Merrin, Merrin Mortgage | Premiere Mortgage Centre

Source: Rob McLister, “HEB’s Advantage: Not Your Grandma’s Reverse Mortgage,” Mortgage Logic News, October 14, 2026. Product details and rates are as announced before launch and may change. This post is for information only and isn’t personal financial advice.