Toronto-headquartered Bloom Finance Company Ltd. has rolled out SafeRate, which is being promoted as Canada’s first reverse mortgage with a lifetime fixed interest rate.
According to the company, the new product is designed to protect seniors by eliminating uncertainty from interest rate changes and renewal premiums. Borrowers will be able to maintain their reverse mortgage and locked-in rate if they ever choose to downsize, penalty-free. SafeRate will also provide a full waiver of prepayment fees within three years of the first homeowner’s death, and if the last surviving homeowner enters long-term care.
“For too many Canadians aged 55-plus, rising living costs have made it a constant struggle to balance financial security and quality of life in retirement,” said Ben McCabe, founder and CEO of Bloom Finance. “SafeRate changes that by unlocking the wealth in their homes with a lifetime fixed rate, giving retirees predictability, and protections for their families, so they can focus on enjoying their golden years without having to choose.”
